Pakistan's defence exports increased to more than $40 million in 2006-07 and France, Germany, South Korea, Turkey and other countries have offered joint ventures to manufacture and market small arms and ammunition, a news report said. “The industry is also meeting domestic requirements of sophisticated arms and ammunition,” the Chairman of the Pakistan Ordnance Factories, Wah, near Islamabad, Lt-Gen Syed Sabahat Hussain told leading English language daily Dawn. He said the POF's aggressive marketing efforts had helped it to enhance defence exports in 2006-07 and now it aimed to get more orders. Hussain said some other countries, including Malaysia and Argentina, had also decided to offer joint ventures. He said the POF signed a cooperation agreement with Poongsan of South Korea for co-production and co-marketing of complete rounds of 155mm base-burn dual-purpose improved conventional munitions (BB-DPICM) by the POF. According to the agreement, the first lot would be delivered to Pakistan Army General Headquarters in 2007-08. The POF's share of work would gradually increase to 50 per cent, starting from 10 per cent. “On our request, the procurement of complete rounds planned by the Pakistan Army was diverted to the POF. The POF renegotiated the price of the ammunition with Poongsan on C&F basis, which resulted in a saving of $2.726 million,” Husain said. Pakistan, he said, would be getting technology transferred through the joint venture, which would provide new market access to Pakistan. He said the POF and MKEK of Turkey had agreed to share expertise in joint R&D projects to meet requirements of both Pakistani and Turkish armies. Pakistan Army, he said, was interested in extending the range of its existing stock of 122mm multiple-barrel rocket launchers from 20kms to 40kms. POF has short listed Edepro of Serbia in this regard. Modalities of the joint venture will be finalised subject to successful trials and acceptance by Pakistan Army. “Also, Nexter of France has agreed to join hands for co-production and co-marketing of 155mm hollow base/base bleed LU211 artillery,” Hussain said adding that trials were expected in September 2007. He said the POF was planning to build CNG cylinders in cooperation with an Argentine company. He said that POF was planning to outsource some of its work to the private sector to concentrate on its core businesses. The outsourcing to the private sector would be in the downstream industry.
