Manufacturing defence

Pakistans military is deemed to be the most efficient and effective state-run institution in the countrys history, having technologies, strategists and foot soldiers which are globally comparable and competitive. The institution has always been instrumental in devising the countrys foreign policy and often been the reason for aid inflows from the West and Middle East.
In recent past, coalition support fund - the payment to military services rendered in the war against terror - has helped in export service proceeds; the money is still flowing in. Additionally, unconditional aid of $1 billion sent by Saudi Arabia is perceived to be a bonus for excellent work done by military officers deputed there. There is immense potential in providing military services to the GCC Muslim countries.
The official number of products of military exports is minuscule as most of the trade is classified and not visible in the official numbers. One can extrapolate it from errors and omission, which suggests that the amount is not that low. There are concentrated efforts by defence export promotion organization (DEPO), which is biannually organizing export promotion exhibition - IDEAS. Its eighth exhibition staged in Karachi from Dec 1-4 and had around hundred foreign participants from 47 countries took part in it.
Its hard to find the impact of these initiatives from official numbers but the promise surely exists as military technology can boost to other industries around. Defence sectors have traditionally helped develop SMEs in the US and Western Europe. Silicon Valley ecosystem partly owes itself to the giant defence contracts dished out in the early part of second half of twentieth century to small and medium-sized companies. Building their capabilities, these firms later ventured into electronics and computing, underpinning modern technology and hardware innovation.
To date, governments like the US and UK and Germany fiercely compete diplomatically for their defence sector firms, because of their impact on local high-end manufacturing. Boeing and Airbus signify aircraft competitors. Lockheed Martin and Raytheon, US weapons giants, compete with European and Russian defence firms.
Neighbouring India is also focusing on more local manufacturing, as prioritized by their new premier. Historically, Pakistan remained amongst the top importers of military equipment, although its not visible from the countrys imports data (release by the central bank) for obvious reasons. According to Stockholm International Peace Research Institute (SIRPI), India had the highest share in imports of global arm trade during 2008-12, surpassing China. Pakistan was third on the list after these two neighbouring giants.
Russia remained the main supplier to India (75% of its arms imports), being worlds second biggest exporter after USA. Ever since Modi took over, India is diversifying its imports from Russia to having increased focus on military trade and investment plans with the USA. To counter it, Russia has also been looking at other options in east as recently its Defence Minister visited Pakistan followed by Pakistans Finance Ministers tour to mother Russia.
But that does not undermine Pakistans relationship with its biggest military partner, the USA, as Chief of Army Staffs recent visit to the states was termed as a successful one. Plus, the EU is pressing hard on Pakistan to aggressively condemn Russias actions in Ukraine.
Nonetheless, the reshuffling is good in modern days of changing paradigm. In an expo seminar, Chairman Joint Chief of Army Staff spelled out the changing military philosophy from state-versus-state or army-versus-army thinking to focus on domestic peace and internal harmony in days of enemies within the state.
Earlier this year, federal government hinted to focus on military-related trade and investment ties with Bahrain and Nigeria. That could help in propping up defence-related industry.
In this regard, the IDEAS expo is a great initiative (except for holding it in the middle of Karachi) and it is hoped that participants would be able to sell products and services to a number of these countries. That could have a spillover to develop medium-sized energy and technology companies at home.
But future expos must also be organised in other parts of Pakistan, to allow foreign delegates to experience the overall potential of Pakistans defence industry. The way textile and other manufacturing-concerns seminars, conferences and expos are held up north, the next time the IDEAS could be organized near, for instance, Wah Cantonment, which is the heart of Pakistan defence industry.