Bilal
THINK TANK: CONSULTANT
How are Chinese state owned entities so massively efficient. They have entirely state owned defence industry and is probably the most efficient and massive in capacities.To be clear, Pakistan can scale up production capacity via NESCOM or some other state-owned enterprise. I think that's the plan for the time being.
But with that you're going to eat a lot of long-term cost, i.e., pensioned government jobs, static skill-sets, production overhead (CNCs etc) and so on.
We'd ideally shift this mass-production capacity off to the private sector that all that infrastructure and salary overhead is off the public exchequer. Moreover, with the right incentives, the military's demand will drive private investors into the area and generate lots of good jobs and, in turn, drive growth in other areas (e.g., housing, services, etc). It's the kind of economic stimulus we need and can drive through defence.
The incentives structure is key. We need to encourage the private sector to not just set up shops, but to keep innovating. Ideally, we'd reach a point similar to India or Turkey where a big defence requirement drives direct production investment which, in turn, drives the local development of tooling and jigs which, in turn, drives R&D in these areas. It's doable, but it takes time, persistence, and can-do mentality. BEC was producing jigs and tooling for Pakistani manufactures until ZAB came into power.
Pakistani private capital exists, it's just being sunk into land (literally) or into UAE due to the otherwise shaky economic climate at home. We carry out the right reforms re: tax and co-investment (e.g., government owning a minority share in new startups with an option to sell, maybe as incentives for offsets with foreign OEMs), we can start growing the economy on the right foundations and indigenize our defence needs.
No private sector entity in the world comes even close.





