According to the country’s Federal Budgets for 2015-16 and 2016-17, Pakistan has increased defence spending, for two consecutive years, by some 10-11%, when compared to the respective previous years. Specifically, the amount allocated for the Ministry of Defence for the year 2016-17 was approximately 860 Rs billion (about 8.2 billion US dollars), whereas for 2015-16 it was some 781 Rs billion (about 7.5 billion US dollars). This double-digit increase, is quite in line with the Defence Budget increases the country exhibits in recent years. Of the 860 Rs billion (8.2 billion US dollars) allocated for 2016-17, 327 Rs billion (3.1 billion US dollars) was to be spent on personnel, while operating expenses were to amount to some 216 Rs billion (2.1 billion US dollars). Maintenance of infrastructure and construction of new buildings was to further account for 105 Rs billion (1 Billion US dollars), while Pakistani authorities were to allocate approximately 212 Rs billion (2.02 billion US dollars) on the procurement of new military equipment and materiel.

Currently in Pakistan (2016), there are over twenty (20) major Public Sector Organizations and over one hundred (100) Private Sector firms engaged in the manufacturing of defence related products, which are internationally recognized for quality, reliability and competitive prices. The local defence industry not only addresses the requirements of the Pakistani Armed Forces, but also exports a number of defence items. In order to facilitate export activity of domestically manufactured defence items, the Defence Export Promotion Organisation (DEPO) was established by the local government. To this end, DEPO also organises defence exhibitions, such as the International Defence Exhibition and Seminar (IDEAS), which was first held in the year 2000.

Regarding ground forces, the Pakistani defence industry offers a wide variety of defence related products. The Al Khalid Main Battle Tank (MBT), jointly developed with China, is the latest cost effective achievement of the indigenous industry, which can be compared with any modern tank available worldwide. In addition, the Al- Zarrar MBT and SAAD APC (Armoured Personnel Carrier) are two platforms that combine quality and cost efficiency. Some of the predominant entities active in the related direction include:

  • Armament Research and Development Establishment (ARDE)
  • Global Industrial & Defence Solution (GIDS)
  • Scientific Engineering & Technology Services (SETS)
  • Al-Technique Corporation of Pakistan (ATCOP)
  • Heavy Industries Taxila (HIT)
  • Institute of Optronics (IOP)
  • Military Vehicle Research & Development Establishment (MVRDE)
  • National Radio Telecommunication Corporation (NRTC)
  • Pakistan Machine Tool Factory (PMTF)
  • Pakistan Ordnance Factories (POF)
  • People Steel Mills Ltd

In the naval sector, PN Dockyard is appropriately equipped to meet the maintenance requirements of the Pakistani Naval Fleet. Additionally, PN Dockyard offers retrofitting services for modern ships and submarines, thus providing cost effective maintenance capabilities for Pakistan’s Naval assets.

Furthermore, Karachi Shipyard and Engineering Works (KS&EW) is the first Public Sector Organization which achieved ISO 9000 certification in 1996 and now is certified to ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007. Some other significant Pakistani entities active in the shipbuilding industry include:

  • Global Industrial & Defence Solution (GIDS)
  • Marine Systems (Pvt) Ltd

Additionally it is worth noting that most of the Pakistan Air Force (PAF) requirements for MRO, are met through the Pakistan Aeronautical Complex (PAC), at Kamra. Moreover, the company in collaboration with other entities, domestic and foreign, has developed the JF-17 Thunder, Super Mushshak and K-8 aircraft. The other most significant Pakistani entities active in the aircraft and related equipment domain, consist in:

  • Global Industrial & Defence Solution (GIDS)
  • Precision Engineering Complex (PEC)