{"id":42275,"date":"2020-06-10T16:53:14","date_gmt":"2020-06-10T16:53:14","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/06\/10\/pakistans-private-industry-clashes-with-government-over-regulations\/"},"modified":"2026-08-07T23:29:23","modified_gmt":"2026-08-07T23:29:23","slug":"pakistans-private-industry-clashes-with-government-over-regulations","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/asia-pacific\/2020\/06\/10\/pakistans-private-industry-clashes-with-government-over-regulations\/","title":{"rendered":"Pakistan\u2019s private industry clashes with government over regulations"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ISLAMABAD \u2014 The Pakistani government\u2019s restrictions on the defense industry are stifling potential and must go, according to the president of the trade body Pakistan Aerospace Council.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">PAeC is a collective of aerospace, defense and high-tech electronics enterprises that aims to internationally <a href=\"https:\/\/www.defensenews.com\/global\/asia-pacific\/2019\/07\/25\/pakistan-wants-to-create-a-self-reliant-self-sustained-defense-industry\/\" target=_blank>raise the profile<\/a> of Pakistani industry. Its leader, Haroon Qureshi, heads the defense engineering and electronics company East West Infiniti. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a June 3 post on the PAeC website, Qureshi said Pakistan\u2019s private, high-tech manufacturers have the potential to help establish a more ambitious local aviation industry by acting as suppliers to and manufacturers of components and systems used by Western counterparts. However, this is hampered by government restrictions that demand permission prior to even design work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without these restrictions, Qureshi believes the private sector could \u201cleap-frog, especially with electronics of the future.\u201d <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Citing the success of private space companies in the United States, Qureshi said if the Pakistani government frees the high-tech private sector to \u201cinnovate and do what the private industry thinks is feasible and viable,\u201d those businesses would not use public funds and probably generate income for the government through taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In response to PAeC\u2019s comments, the Ministry of Defence Production told Defense News the government recognizes and actively promotes the importance of \u201cindigenization and cooperation between the private sector and the defense-related industry.\u201d However, it denied there are stifling constraints on the private sector, saying the market meets both domestic and export demand, but because of \u201cinternational obligations\/treaties, especially the measures taken to counter terrorism, certain limitations have to be observed.\u201d <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nevertheless, the ministry added, \u201cmeasures are under deliberation to further facilitate the private sector in forthcoming defense production policy,\u201d including the creation of a unit for so-called one-window operations \u2014 an approach meant to shorten the lengthy bureaucratic process. It also cited recent supplier and vendors exhibitions as well as a defense production seminar to promote cooperation among private businesses. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government is also preparing a \u201cDefence Offset Policy&#8221; to encourage the private sector to absorb the \u201clatest defense and dual-purpose technologies,\u201d the ministry said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But author, analyst and former Australian defense attache to Islamabad Brian Cloughley said Qureshi\u2019s concern has existed for years, and the government\u2019s regulations are driven by security fears.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhenever private industry wants to get involved in any aspect of defense production, the security people and bureaucrats in the defense system roll out objections, based mainly on the possibility of leakage of technical information and thus jeopardy of \u2018national security,\u2019 \u201d he said. \u201cIt\u2019s been a real headache, and I continue to be surprised that the private sector has continued its efforts for so long.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the government\u2019s efforts, Shehzad Ahmed Mir, managing director of the private defense company Bow Systems, remains unconvinced. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhile MoDP lives in a self-pleasing, make-believe cocoon devoid of market realities, similar companies created much later in the West are literally thriving financially and technologically today simply because their respective governments gave them subsidies, export incentives, financial support, etc., compared to our government that drowns their ambitions in [no objection certificates], taxation whirlpools, bureaucratic hurdles, etc.,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSo by the time \u2014 and if at all \u2014 MoDP comes out with any good news for the private sector, there won\u2019t be anyone credible around to jubilate on it.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pakistani government\u2019s restrictions on the defense industry are stifling potential and must go, according to the president of the trade body Pakistan Aerospace 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