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YEAR BOOK
1. 2018-21

Ministry of Defence Production

Government of Pakistan
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TABLE OF CONTENTS

Content Page

Message from Minister 3

Foreword by the Secretary 4
PART – I MoDP AND ITS ALLIED DEPARTMENTS 5
Existing Defence Production Sector of Pakistan 5
Expansion in Defence Production under MoDP 5
Mandate of MoDP 6
Key Functions of MoDP 6
Internal Structure of MoDP 6
Allied Departments 7
Defence Production Establishments (DPEs) of MoDP 7
Commercial Subsidiaries / Semi Government Enterprises 8
Private Defence Production Firms 8
Executive Departments of MoDP 8
PART – II VISION AND OBJECTIVES 9
Vision of MoDP for Defence Production Sector 9
Key Objectives Derived from the Vision 9
Goals 10
PART – III INITIATIVES / ACHIEVEMENTS 11
POF 11
HIT 11
PAC 12
KS&EW 12
NRTC 12
Establishment of Gwadar Shipyard 13
Inclusion of ToT in Big-Ticket Contracts 13
Empowerment of BoDs 13
Restructuring 13
Focused R&D 13
Revision of Manuals 13
R&D Cases Approval 13
New Import NOC SOP 13
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Content Page

E-Governance System 13
Connectivity with Service HQs 13
Cyber Security Mechanism 13
Think Future (Seminars). 13
Engagement with Govt / Legislative Bodies 14
Policy Formulation 14
Export Promotion 14
Clean & Green Pakistan Initiative 14
Savings to National Exchequer 14
Commercial Earnings 14
Provision of Jobs 15
Corporate Social Responsibilities 15
Media Excerpts / Testimonials 16
PART – IV PICTORIAL OVERVIEW 17
PART – V MAJOR PRODUCTS 20
POF 20
HIT 23
PAC 27
KS&EW 29
NRTC 31
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Message from the Minister

Pakistan defence production sector has a significant role in strengthening of

conventional defence and national economy. Ministry of Defence Production is striving

hard for a self-reliant / self-sustained defence production industry with a view to increase

job opportunities, generate revenue, decrease dependence on imports and increasing the

exports to earn valuable foreign exchange. Pakistan has a robust industrial base which is

being modernized to meet the domestic and international demand. We are also focusing

on accelerating indigenization through fully integrated public and private sectors in

defence production.

“Year Book 2018-21” is presented to showcase our efforts in pursuit of the set

objectives / goals. Though the journey towards self-reliance in defence production is

quite long, but it is hoped that we would achieve the ultimate objective with dedication

and patience.

May Allah Almighty grant us the requisite strength and fortitude to contribute with

resolve and commitment towards a strong, secure, and developing Pakistan.

Ms Zobaida Jalal
Minister for Defence Production
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Foreword by the Secretary

Security through self-reliance has always remained a cornerstone of Pakistan’s

national defence policy. Government of Pakistan had been striving since independence to
equip the Defence Forces of Pakistan with the latest weaponry at a reasonable cost. Our
history and geo-strategic location have strengthened our resolve of achieving self-
reliance in the defence production capabilities and diversifying sources of military
procurements.

I feel immensely pleased to present the “Year Book 2018-21” of the Ministry of
Defence Production, in pursuance of Sub-Rule (2) of Rules of Business, 1973. It contains a
brief introduction of the Ministry, and a brief account of its performance during the said
period.

I cherish and hope that this book shall provide requisite information regarding the
achievements of MoDP, mainly related to self-reliance / self-sustenance according to the
mandate of MoDP. I acknowledge concerted efforts of concerned officers and staff in the
preparation of this book.

Feed-back and the suggestions are welcomed and shall be given due consideration.

Lieutenant General (Retired) Sadiq Ali

Secretary Defence Production
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PART – I
MODP AND ITS ALLIED DEPARTMENTS

“Against them make ready your strength to the utmost of your power, including steeds of
war, to strike terror into the hearts of the enemies of Allah and your enemies, and others besides
them, whom you may not know, but whom Allah does know. Whatever you shall spend in the
cause of Allah, shall be repaid unto you, and you shall not be treated unjustly.”
Al-Quran (8:60)

1. Existing Defence Production Sector of Pakistan. After the partition all 16 x

Ordnance factories went under Indian possession, since not even one of them was
situated in Pakistan. The indigenous development of arms kick-started with the
establishment of Pakistan Ordnance Factories (POF) in 1951 to produce the required
munitions for the Defence Forces and Law Enforcement Agencies. 1965 & 1971 Wars
further strengthened the resolve of achieving self-reliance in the defence production
capabilities and diversifying sources of military procurements.

2. Defence Production Division was constituted in 1972, under Ministry of Defence

with an aim to supervise the defence production / procurement activities and to
accelerate pace of technological development for achievement of greater self-reliance
through indigenization. Later, Defence Production Division was elevated to the status of
Ministry of Defence Production (MoDP) in 2004 to spearhead the defence production /
indigenization efforts.

3. Expansion in Defence Production under MoDP. Since inception, MoDP has

undergone vast expansion in quest of its aim and objectives which is illustrated below:-
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4. Mandate of MoDP. To meet the requirements of armed forces through indigenous

production as well as foreign / inland procurement and to export surplus capacity to
friendly countries.

5. Key Functions of MoDP

a. Formulation and execution of policies related to Defence Production.
b. Indigenous production and manufacturing of defence equipment / stores.
c. Procurement of defence equipment / stores for Defence Forces.
d. Research & Development related to defence equipment / stores.
e. Coordination of defence scientific research with civil scientific research
organizations.
f. Declaration of industries for defence and war.
g. Negotiations of agreements / MOUs for foreign cooperation and
collaboration in Defence Production and Procurement.
h. Loans for purchase of military stores and Transfer of Technology (ToT).
i. Export of defence products including marketing and promotion of activities
relating to export of defence products.
j. Coordinate and monitor activities of all Defence Production Establishments
(DPEs) and Executive Departments (EDs).

6. Internal Structure of MoDP

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7. Allied Departments

8. Defence Production Establishments (DPEs) of MoDP

a. Pakistan Ordnance Factories (POF) Wah. Established in 1951. Produces
Arms & Ammunition for all three Services and Law Enforcement Agencies. It
has 14 x factories and 12 x subsidiaries. Main production items are rifles,
machine guns, rocket launchers, mortars & their ammunition as well as tank
/ artillery munitions.
b. Heavy Industries Taxila (HIT). Established in 1971. Produces / rebuilds
Tanks & APCs for Army and Law Enforcement Agencies. It has 7 x factories
and 1 x subsidiary unit. Its main products are Tank Alkhalid and different
versions of APCs.
c. Pakistan Aeronautical Complex (PAC) Kamra. Established in 1972.
Produces, rebuilds, and overhauls the fighter and trainer aircraft for PAF
and Army Aviation. It has 4 x factories. Its main products are JF-17 thunder
and Mushshak aircraft.
d. National Radio Telecommunication Corporation (NRTC) Haripur.
Established in 1960 and develops communication equipment / IT Solutions.
It has 3 x factories which produce radio sets, jammers, sensors etc. Its main
products are software defined radio sets and LMRs.
e. Karachi Shipyard & Engineering Works (KS&EW). Established in 1956 and
engaged in Shipbuilding / repair. It has 6 x factories that produce / repairs /
overhauls ships, vessels, boats, submarines.
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f. Gwadar Shipyard. In the process of establishment. It will have the capacity

of 400–600-ton ships.
9. Commercial Subsidiaries / Semi Government Enterprises
a. Wah Industries Limited – A subsidiary of POF.
b. Wah Nobel Limited - A subsidiary of POF.
c. Margalla Heavy Industries Limited - A subsidiary of HIT.
d. KAIL - A subsidiary of PAC.
10. Private Defence Production Firms. Around 145 x private firms are engaged in
producing defence related items.

11. Executive Departments of MoDP

a. Directorate General Defence Purchase (DGDP). Defence purchases and
procurements.
b. Directorate General Munitions Production (DGMP). ToT contracts and
facilitation of local defence industry.
c. Directorate General Research & Development Establishment (DGRDE).
R&D for Defence Services.
d. Defence Export Promotion Organization (DEPO). Export promotion of
Defence products (surplus capacity of) DPEs and private sector.
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PART – II
VISION AND OBJECTIVES

12. Vision of MoDP for Defence Production Sector. In line with the PM’s Vision, the
vision of MoDP is “to facilitate Defence Production Sector that collateralizes local Defence
Industries with the Defence needs of the Armed Forces through Public Private Partnerships and
contributes toward national security and economy”.

13. Key Objectives Derived from the Vision. In line with the PM’s vision, MoDP
started a focused campaign for a self-reliant / self-sustained defence production industry
along with increasing job opportunities, generation of revenue, decreasing dependence on
imports and increasing the exports to earn foreign exchange. Accordingly, following key
objectives were set for the defence production sector:-
a. Modernization of Public Sector Defence Industry to fulfil needs of Armed
Forces at an affordable cost.
b. Sustainable growth of Private Sector Defence Industry through public-
private interface.
c. Optimum self-reliance through R&D / ToT / Offsets.
d. Minimize burden on national exchequer through earning / saving of foreign
exchange from defence exports and import substitution.
e. Boost to national economy through industrialization and employment
generation.
f. Streamlining the procedures for maximum Ease of Doing Business (EoDB).
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14. Goals. Major goals are to achieve self-reliance and self-sustenance in defence
production:-
a. To achieve Self Reliance through :-
(1) Revitalization of Public Defence Industry.
(2) Growth of Private Defence Industry.
(3) Gradual indigenization using R&D, ToT, Offset, Human Resource
Development etc.
b. To achieve Self Sustenance through:-
(1) Enhanced Defence Export.
(2) Corporatization.
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PART – III
INITIATIVES / ACHIEVEMENTS

15. Operational Improvements in DPEs

a. POF
(1) Enhanced efficiency with Posting of 2 x DGs i.e., DG Production and
DG Commercial.
(2) Selective Modernization
(a) Upgradation of plants & machinery / infrastructure like
commissioning of Small Arms Ammunition manufacturing
plant.
(b) Development of POF-X Pistol.
(3) ToT of Gun & Tk Ammo
(a) ToT absorption for ammunition manufacturing of new guns at
POF is in process.
(b) ToT of ammunition manufacturing for VT-4 Tanks is
progressing smooth.
b. HIT
(1) Rolling Out of Al-Khalid Tanks. Rolling out of indigenously
manufactured Al-Khalid Tanks completed at the 1/3rd cost of the
international market.
(2) Rebuild of Tk T80UD and ToT for its assembly at HIT is progressing
smooth.
(3) Indigenous Dev of VT-4 Gun Barrel. The project is progressing
smooth.
(4) Commercial Window. Margalla HIL has been established after
amendment in the HIT Act, in order to enhance its inland and foreign
sales.
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c. PAC
(1) Commercial MRO Facility. Maintenance, Repair & Overhaul (MRO)
facility being established at Islamabad Intl Airport for the commercial
airliners as a JV (USD 70 M) with ASG, Lithuania and Navtek, China.
(2) All Weather Shed. All-weather sheds have been constructed for
MRO facility at PAC.
(3) Design Improvement. Twin Engine JF-17 has been developed.
(4) New Export Avenues
(a) Export of JF-17 to Nigeria - USD184 Mn.
(b) Contract finalization of 12 x Mashaks to Iraq - USD 33.33 Mn.

d. KS&EW
(1) Transformed from Sick to A Thriving Unit
(a) Full Financial Sustainability of KS&EW achieved after
settlement of all previous liabilities.
(b) Massive upgradation of shipyard worth Rs. 12 Bn financed
through PSDP has been completed including the first of its
kind Ship Lift Transfer System (SLTS) in Pakistan.
(2) ToT worth millions of USD has been acquired for submarine and ship
manufacturing (MILGEM & HANGOOR).

e. NRTC

(1) Dynamic Business Uplift. NRTC has become a role model being
self-sustainable and profit earning enterprise with diversified
business solutions. NRTC is venturing into new and diversified
products like RFID no plates, safe city projects, integrated intelligent
transport system, ground surveillance system, EoD solutions,
Robotics and Artificial Intelligence solutions.

(2) JV. Italian Firm is planning to establish repair / maintenance facility

in Pakistan in collaboration with NRTC.

(3) Transfer of TIP to NRTC. Principal approval accorded by the PM.

Modalities being worked out in consultation with all stakeholders.

(4) Fight Against COVID. Indigenous manufacturing of Ventilators.

25,000 Masks, 400 lit Sanitizer and 500 PPE suits pd.
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16. Major Initiatives / Achievements by MoDP

a. Establishment of Gwadar Shipyard. This national level project is being
vigorously pursued by MoDP. An MoU has recently been signed with Govt
of Balochistan for handing over the land to MoDP. Executive Project
Director has been appointed and Rs. 245 Mn have been allocated in the
budget of CFY to kickstart the project.
b. Inclusion of ToT in Big-Ticket Contracts. ToT is now being made part of all
big-ticket items in order to ensure self-reliance.
c. Empowerment of BoDs. POF and HIT BoDs now being made more dynamic,
responsive & forward looking through required amendments in Acts, rules,
and procedures.
d. Restructuring. MoDP has been re-organized in sync with the institutional
reforms initiated by the government. Directorate General of Research &
Development Establishment (DGRDE) has been created after merger of
3 x R&D establishments. Defence Export Promotion Organization (DEPO)
has been designated as a permanent Executive Department. Coord, Policy
Cell have been established at MoDP whereas Foreign Cooperation Cell has
also been restructured. MoDP shall transform into a dynamic, vibrant, and
efficient entity with correct div of responsibilities resulting into good
governance and Ease of Doing Business after restructuring.
e. Focused R&D. Rs 2 Bn allocated first time for 10 x Projects.
f. Revision of Manuals. DPPI and DGMP Green Book have been revised.
g. R&D Cases Approval. Process reduced to two weeks only.
h. New Import NOC SOP. Issued in 2020 and the process has been reduced to
15 days.
i. E-Governance System. Digital mailing has started. DGMP’s record has been
digitized. A Dashboard being designed for quick decision making at all
levels.
j. Connectivity with Service HQs. Connectivity with service HQs has been
improved manifolds through digital mailing system.
k. Cyber Security Mechanism. Fresh policy issued and implemented. Cyber
Security Audit conducted by NRTC and NITSB.
l. Think Future (Seminars). 2 x Seminars were conducted to deliberate upon
various options to modernize and achieve self-reliance / self-sustenance in
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defence production sector. Recommendations of seminars being

implemented.
m. Engagement with Govt / Legislative Bodies. MoDP is extensively engaged
with the standing committees of NA & Senate and Cabinet Committee of
Institutional Reforms. Around 15 x meetings held with various state
committees and different issues deliberated / resolved.
n. Policy Formulation
(1) Def Production Policy - 1st Draft under consideration
(2) Offset Procedures - Final consultation in progress.
(3) Export NOC Procedure - Finalized.
(4) Import NOC Procedure - Finalized
(5) Single Regn Procedure - Being simplified.
o. Export Promotion
(1) Foreign Delegations - 22
(2) National Delegations - 10
(3) Foreign Exhibitions attended - 28
Exhibition Chief Guest Foreign Local Visitors
Firms Firms (Approx.)
SAVDEX CJCSC N/A 60 15,000
IDEAS President 320 204 1 Mn
International Provincial Minister 40 100 0.4 Mn
Rawal Expo
th
Senator Azam Sawati 11 13 10,000
5 Defence Port
Turkey 2019
SAVDEX - 2020 CJCSC N/A 73 20,000
Virtual Rawal President of Pakistan 20 80 0.1 Mn
Expo - 2020
p. Clean & Green Pakistan Initiative. Clean & Green Pakistan drive was
undertaken with full zeal and enthusiasm at MoDP and all allied setups.
Around one Mn trees were planted during the campaign.
q. Savings to National Exchequer. MoDP and its allied departments have
made substantial contributions to national exchequer by huge savings
through import substitution, procurement negotiations, exports, and taxes /
duties.
r. Commercial Earnings. An unprecedented boost in the Defence Exports
(Approx. Rs. 60 bn) and Inland Sales (Approx. Rs. 70 Bn) was accomplished
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due to dedicated / synergic efforts of MoDP / DPEs and respective Services

HQs during three years period. Rs. 6 Bn Taxes / duties are paid annually.
s. Provision of Jobs. Around 8,000 jobs have been provided to unemployed
youth in Defence Production Sector during past three years. Quota system
was strictly adhered in all the enrolments.
t. Corporate Social Responsibilities. A substantial amount is also spent
annually on quality education, medical facilities, respectable living, and
welfare of over 50,000 employees.
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u. Media Excerpts / Testimonials

(1) PM’s Tweet after Visiting NRTC Haripur

(2) “Pakistan has the potential to emerge as a global platform for defence
research, scientific growth, manufacturing, and joint ventures in order to
strengthen its defence capabilities and spur developments as well as
exports in this sector. Towards this, the Ministry of Defence Production is
continuing to evolve clear priorities and approaches for protecting and
defending the interests of the defence industry of Pakistan at home and
abroad”.
Minister for Defence Production’s address to the IDEAS 2018.
(3) “Apart from public sector and defence production organizations, there is a
dire need for a fully integrated private sector in the country’s defence
industry. There is a need to amplify indigenization through fully integrated
public and private organizations in defence production for meaningful
progression in defence of the country,”

COAS’ address to Defence Production Seminar – 2019.

(4) “Gwadar Shipyard being bigger than Karachi Shipyard, carries immense
geographical importance where world class ships will come for repairs
which would be significant for boosting the economy of Balochistan.”
Minister for Defence Production’s address at MoU signing of Gwadar Shipyard.
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PART – IV
PICTORIAL OVERVIEW

President of Pakistan visiting IDEAS Inauguration of Electro Medical Lab at

NRTC by PM

Minister for Defence Production Minister for Defence Production

with PM at COMSTECH inspecting the repairing of ventilators
at NRTC

Nigerian delegation visiting POF Rolling out of Alkhalid Tank at HIT

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COAS Visiting HIT Minister for Defence Production

visiting PAC Kamra

Minister for Defence Production MoU Signing Ceremony of Gawadar

launching Fast Attach Craft at KS&EW Shipyard

Minister for Defence Production at Minister for Defence Prodcution

IDEF Turkey hosting Turkish delegation at MoDP
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Team of KS&EW at work Rebuilding of a Self-Propelled Gun at

HIT

Tank overhaul at HIT PAC team at work

Uplift of KS&EW
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PART – V
MAJOR PRODUCTS

POF

POF-X
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HIT

Tank Al-Khalid Tank Al-Khalid 1

Tank VT4 Tank T-85 IIAP

ARVs W-653 Tank T-69 IIMP

APCs M113P Maaz BSWS Carrier

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Mouz RBS-70 Carrier Comd Veh Sakb

Log Veh Al Qaswa ARV Al Hadeed

Rebuild Tank T-59 Rebuild Tank Al Zarar

Rebuild Tanks T-85 IIAP Rebuild Tank T80 UD

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APC M113 Family SP Guns M109A2

ARVs W-653 ASV Mohafiz

ASV Interceptor ASV Protector

ASV Dragoon APCs Talha

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Bullet Proof Vehicles AGP Ahan

Bullet Proof Jackets

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PAC

Mashshak Aircraft JF-17 Thunder Aircraft

K-8 Aircraft

Maintenance, Repair & Overhaul

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Upgradation / Retrofit

Maintenance of AW-139 Helicopter

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KS&EW

Multi Mission F22P Frigate Midget Submarine

Maritime Patrol Vessel Jalalat Class Missile Boat

Floating Dock Fast Attack Craft (MISSILE)

32 Tons Bullard Pull Tug 17,000 Tons Fleet Tanker

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Coastal Oil Tanker Multi-Purpose Barge

Multi-Purpose Auxiliary Craft – Harbour Utility Vessels

Missile

Small Tanker Cum Utility Ships Dredge Tender

32 Ton Bollard Pull Tug 10 Ton Bollard Pull Tug

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NRTC