Why Pakistani investors have little interest in the defence sector?

[Echo_419]

Aaaaj kal France waleiii Pakistani humeinnn koi lift hiii nahin karvateiii !

Tu hi batta yaar
Meine seedhi baat boli agar budget kam gai(for procurement of arms) which is not much in your case why will any pvt entity will invest in Defenese production

Aur phir yeh Toilet ko
Leh ayaa debate Mein

 

[Georgeclark]

Pakistan investors wants low investment and huge returns and are more interested in distributor licenses of imported products. Defense industry is mostly captive market selling products to the Pakistan Armed forces where bribes and commissions are expected to be paid. If the Generals don't like you for any reason you will not be able to sell your products.

@PWFI This is exactly why budget is related to it.

 

[PWFI]

What do you think, what would the defense companies take Interest in manufacturing ??

Things like UAV's like they are already doing, electronic components, small arms...

 

[Echo_419]

Why bring in toilets every time?? cause you do not have anything else to say ?? Pakistan doesn't lag behind in that, it too comes at 3rd place with 41 Million without toilets, so its better not to get into it. Plus India is doing better to improve in it.

He is right in it, budget is a problem who is going to buy the products its the Army not the people, if the budget is good then they will buy more stuff. Any defense Company needs atleast a 1-2 Billion $ Investment, if its not getting the returns its of no use, plus other countries will only buy it after the sole developer uses it.

Same baat boli Meine aur phir woh toilet leh ayaa

 

[Georgeclark]

Things like UAV's like they are already doing, electronic components, small arms...

Ok so electrical components, drones etc. Most of the things Pakistan uses is of Chinese and Russian origin which won't be replaced for long also Pakistani armed forces cannot procure anything new in large quantities atleast till 10 more years. Whom will the companies sell ?? They won't sell 2-10 drones and be happy, they expect there buyers to buy atleast 50 or more which cannot happen right now. Therefore no company would even think of wasting there money on R&D of a product which won't sell and bring returns.

 

[Armstrong]

Tu hi batta yaar
Meine seedhi baat boli agar budget kam gai(for procurement of arms) which is not much in your case why will any pvt entity will invest in Defenese production

Aur phir yeh Toilet ko
Leh ayaa debate Mein

Probably because not every private enterprise is looking for a $10 billion contract which is precisely why private entities from abroad have sold their systems to us. Why wouldn't a private Pakistani company not find it enticing to sell arms to Pakistan and make a few hundred million dollars every now and then ?

Besides its not as if Pakistan is the only customer; if you're building quality equipment battle tested by the 7th largest Army in the world and one of the most battle hardened armies of the past decade your products are not just attractive as potentially good ones but are attractive because they've shown their worth in the field - So you can always sell them abroad.

So no I don't think the budget is much of a reason.....what @HRK highlighted are.

 

[PWFI]

Tu hi batta yaar
Meine seedhi baat boli agar budget kam gai(for procurement of arms) which is not much in your case why will any pvt entity will invest in Defenese production

Aur phir yeh Toilet ko
Leh ayaa debate Mein

Tou mind kar gya!

Imagine if the needed hardware is disponible in pakistan with half of the cost, why pak armed force would purchase the same items abroad with double of the cost with their small budget.

P.S: i got your point

 

[Georgeclark]

Probably because not every private enterprise is looking for a $10 billion contract which is precisely why private entities from abroad have sold their systems to us. Why wouldn't a private Pakistani company not find it enticing to sell arms to Pakistan and make a few hundred million dollars every now and then ?

Besides its not as if Pakistan is the only customer; if you're building quality equipment battle tested by the 7th largest Army in the world and one of the most battle hardened armies of the past decade your products are not just attractive as potentially good ones but are attractive because they've shown their worth in the field - So you can always sell them abroad.

So no I don't think the budget is much of a reason.....what @HRK highlighted are.

A company has to invest a lot into R&D and also establishing factories, labs etc many things which isn't free of cost. They will want there sole buyer at first that is Pakistani Army to put in some initial investment which it cannot do, after that too, it will want it to buy things in more numbers not 5 or 10 pieces.

 

[PWFI]

Ok so electrical components, drones etc. Most of the things Pakistan uses is of Chinese and Russian origin which won't be replaced for long also Pakistani armed forces cannot procure anything new in large quantities atleast till 10 more years. Whom will the companies sell ?? They won't sell 2-10 drones and be happy, they expect there buyers to buy atleast 50 or more which cannot happen right now. Therefore no company would even think of wasting there money on R&D of a product which won't sell and bring returns.

Only Buraq aka "CH-3" derivation with lots of local components is of chinese origin, rest are all made in pakistan except "Falco" and we dont have any russian uav except Mi's heli.

P.S: i got your point but not you, now i am going to gym see you latter

 

[Echo_419]

Probably because not every private enterprise is looking for a $10 billion contract which is precisely why private entities from abroad have sold their systems to us. Why wouldn't a private Pakistani company not find it enticing to sell arms to Pakistan and make a few hundred million dollars every now and then ?

Besides its not as if Pakistan is the only customer; if you're building quality equipment battle tested by the 7th largest Army in the world and one of the most battle hardened armies of the past decade your products are not just attractive as potentially good ones but are attractive because they've shown their worth in the field - So you can always sell them abroad.

So no I don't think the budget is much of a reason.....what @HRK highlighted are.

Any countries company main customer is that countries army if the army lacks a big budget then it will be highly difficult for the domestic sector to develop (I am not saying its impposible but it will be very tough) so Budget plays a very significant role

 

[Armstrong]

A company has to invest a lot into R&D and also establishing factories, labs etc many things which isn't free of cost. They will want there sole buyer at first that is Pakistani Army to put in some initial investment which it cannot do, after that too, it will want it to buy things in more numbers not 5 or 10 pieces.

That depends on the amount of costs we're talking about; no one is expecting a company to pop up in Pakistan with the infrastructure available to give Boeing a run for its money but a company who's deals range more in the tens of millions of dollars category and that does not require nearly that much investment.

 

[Georgeclark]

That depends on the amount of costs we're talking about; no one is expecting a company to pop up in Pakistan with the infrastructure available to give Boeing a run for its money but a company who's deals range more in the tens of millions of dollars category and that does not require nearly that much investment.

So, we can expect companies which manufacture basic things, like Goggles and some camo stuff etc some machinery parts, tires, jeeps small things but not huge once. So, yes they do have potential and I expect Richies in Pakistan can do that.

 

[Echo_419]

Tou mind kar gya!

Imagine if the needed hardware is disponible in pakistan with half of the cost, why pak armed force would purchase the same items abroad with double of the cost with their small budget.

P.S: i got your point

I also get your point but the main reason for this problem is Budget as the budget increases so will the money for arms acquisition & as more companies see that there is opportunity they will invest in it

 

[Armstrong]

Any countries company main customer is that countries army if the army lacks a big budget then it will be highly difficult for the domestic sector to develop (I am not saying its impposible but it will be very tough) so Budget plays a very significant role

You are under the assumption that I'm referring to a company popping up in Pakistan that would replace our existing major suppliers so that the next time Pakistan needs a new MBT that company can come up with a huge line of MBTs for us to choose from. I'm talking about a company that makes value added additions in existing systems so that you get a Thermal imager for a tank worth a few hundred thousand dollars manufactured in Pakistan. For that to happen Pakistan's defense budget is quite sufficient which is precisely why there are some companies still operating in Pakistan - Where do you think the latest drone came from ? GIDS google it.

 

[RAMPAGE]

Tu hi batta yaar
Meine seedhi baat boli agar budget kam gai(for procurement of arms) which is not much in your case why will any pvt entity will invest in Defenese production

Aur phir yeh Toilet ko
Leh ayaa debate Mein

Small budget compared to Indian defence budget but Pakistan Armed forces are not the only buyers.