Pakistan has signed a Memorandum of Understanding (MoU) with China for the export of JF-17 aircraft, a joint Pak-China venture, Senate's Standing Committee on Defence Production was informed on Wednesday. The committee's in-camera meeting, chaired by Mushahid Hussain Syed, reviewed the functions and performance of the Ministry of Defence Production and its sub-departments. Later, the committee's chairman had a media talk.
In its briefing to senators, Heavy Industries Taxila (HIT) disowned the defective APC used in Lyari operation. Later, Senator Faisal Abidi explained to media persons that armour-piercing bullets were fired on that APC, killing a number of police officers in Karachi. These steel bullets were under the use of Nato forces engaged in war against terrorism in Afghanistan. He said there was a possibility that outlaws got hands on these steel bullets while plundering the Nato containers. The exterior of the controversial or flawed APC cannot withstand these steel bullets, he said.
The committee has passed two separate resolutions which will be presented in Senate. Mover of the first resolution, Senator Faratullah Babar informed the media that the committee would pursue the government to give financial and administrative autonomy to Pakistan Ordnance Factories (POF) and Heavy Industries Taxila and other defence institutions which comes under the Ministry of Defence Productions in accordance with their ordinances.
The rules would be amended to add a private member in their boards. To improve the efficiency of defence production, it was necessary that they would be run on public-private partnership basis. "If we want to run these defence institutions on commercial basis, we have to give them financial autonomy," Senator Babar said. The committee observed that the public and private shipping companies had not been contacting Karachi Shipyard and Engineering Works for buying any ship. Under the law, it is binding for every shipping company to get 'First Right of Refusal' from KSEW which is not being implemented in letter and spirit.
The committee was informed that HIT export stood $31.7 million during last fiscal year. Domestic supply reached worth Rs 5.8 billion. The profit of HIT stood at Rs 585 million. However, HIT is anticipating a reduction in profit and estimating it will be around Rs 340 million during current fiscal year. Reacting to recent statement by US Defence Secretary Leon Panetta, published in international media, regarding launching operation in North Waziristan Agency, Chairman Committee said that government will not take dictation from anyone on internal matters.