Türkiye has an Opportunity to Establish JVs in Pakistan and Make Use of the Low-Cost Labor Available in Pakistan
Political and military leadership on both sides is focusing on boosting defense cooperation between Türkiye and Pakistan to have more indigenous products and to reduce the reliance on foreign sources. In this context, considering Pakistan as an important marketplace for its indigenous, NATO standard high-tech defense and aerospace products Türkiye has also fostered a strong partnership with Pakistan in the defense and aerospace sector during last two decade. In recent years, the Pakistani-Turkish defense industrial relationship has continued to deepen, with more bilateral projects undertaken, especially after TUSAŞ successfully upgraded Pakistan Air Force (PAF)’s 41 F-16C/D Block 15 fighters under a US$75 Million contract from Pakistan MoD, during October 2009 – September 2014 under the Peace Drive II Program and official induction of the HAVELSAN design and built Electronic Warfare Test and Training Range (EWT&TR/EHTES), which was established under a US$20+ Million turn-key contract, into the Pakistan Air Force (PAF) in January 2011.
Türkiye-Pakistan Defense Deals
The Turkish Defense & Aerospace Industry is vast and competent, and as such, it offers the Pakistan Armed Forces many possible areas of armament acquisition and development. During last 10 years Turkish Defense & Aerospace Sector companies have secured several export contracts valued around US$3 Billion from Pakistan, including; US$204 million valued technology and know-how transfer for Software Defined Radios (on June 30, 2010), US$350 million deal for the Mid-Life Upgrade of Khalid Class Agosta 90B Submarines (June 22, 2016), US$80 million contract for Pakistan Navy Fleet Replenishment & Combat Support Ship PNS Moawin (AOE-39) construction (January 22, 2013), US$25 million (first batch, in June 2016) and US$24.9 million (second batch, in May 2017) deals for the procurement of 16 (this figure was stated as 8 according to Pakistani sources) + 16 AselPOD EO/IR Targeting Systems, US$1.5 billion contract for the PN-MİLGEM Program (in September 2018) and a number of contracts of an undisclosed valued for the deliveries of BAYRAKTAR TB2 and AKINCI UCAVs and SDT ACMI Pods for the Pakistan Air Force (PAF) as well as ASELSAN's MUHAFIZ 30mm Remote Controlled Stabilized Naval Gun System, ALPER LPI Radars and ARES-2NCL Extended Integrated Radar and Communication Electronic Support Measures (R-ED/C-ED) Systems for YARMOOK Class OPVs for the Pakistan Navy (PN) and two High-Resolution Satellite Cameras with a resolution of ≤50cm. Türkiye, on the other hand, is procuring 52 MFI-395 Super Mushshak trainers to meet the Basic Flight Trainer aircraft requirement of the Turkish Air Force (TurAF).
Under a US$1.5 Billion valued Government-to-Government contract awarded on September 8, 2018, Pakistan is procuring four ADA/MILGEM (dubbed PN-MILGEM) Class corvettes, of which two of them are under construction at Istanbul Naval Shipyard while the remaining two are being constructed in Pakistan’s state-owned shipbuilder Karachi Shipyard & Engineering Works Limited (KS&EW). The commissioning ceremony of the 1st Pakistan Navy MILGEM Ship PNS BABUR was held at Istanbul Naval Shipyard, Türkiye on September 23, 2023. PN-MILGEM Corvettes fitted with state-of-the-art weapons and sensors (including METEKSAN SAVUNMA’s YAKAMOS 2020 Advanced Hull Mounted Sonar System and ASELSAN’s ARES-2NV1.1 R-ED System) will play a key role in maintaining peace and stability in the region. The contract includes a Transfer of Technology (ToT) as well as a Transfer of Intellectual Proprietary (ToIP) rights for the design of the Pakistani ships. PN design teams, who took part in PN-MILGEM design efforts in Istanbul, Türkiye together with the Turkish naval ship designers have also started to design a new ship, which is called the JINNAH Class Frigate (JCF). The scale model of JINNAH Class was displayed for the first time during the IDEF ‘21 Fair in August 2021 at the ASFAT (Prime Contractor of PN-MILGEM Program) stand.
Under a contract disclosed by Haluk BAYRAKTAR, General Manager of BAYKAR TECH, in a statement to Anadolu Agency reporter in January 2022, the Pakistan Air Force (PAF) acquired a large number of BAYRAKTAR TB2 and AKINCI (PAF is likely the first export customer, in AKINCI-B configuration with 2x 750 horsepower engines) UCAVS from Türkiye. Pakistan is believed to have received the first batch of 6-7 AKINCI UCAVs during the first half of 2023. In October 2022, a group of 44 personnel from the Pakistan Air Force participated in an extensive training program in Türkiye. They attended the sixth edition of the AKINCI Training Program conducted at Baykar Defense's facilities. On October 19, 2022, the Pakistan Air Force’s (PAF’s) Public Relations Department released a video featuring various aircraft and weapon systems within the PAF’s fleet, including the AKINCI UCAV.
In March 2022 Turkish defense company SDT Space and Defense Technologies Inc. signed a contract with the Pakistan Air Force (PAF) to deliver an undisclosed number of ACMI (Air Combat Maneuvering Instrumentation) Pods for realistic tactical simulations and training with PAF’s JF-17 and F-16 fighter jets. Contract became effective in June 2022 and the critical design review and project review meeting was held in Ankara.
Meanwhile, according to TÜBİTAK 2022 Annual Report, within the scope of the contract signed between TÜBİTAK Space and SUPARCO on January 26, 2022, under the IQBAL Project, a High-Resolution Satellite Camera with a resolution of ≤50 cm and Image Processing Software will be developed with the participation of SUPARCO personnel. In April 2023 TÜBİTAK President Prof. Dr. Hasan MANDAL disclosed that TÜBİTAK will supply high-resolution EO satellite cameras to a friendly country and added, “We are producing 2 IMECE cameras for a friendly and allied country (referring to Pakistan). Again, we participated in the tender to produce a satellite for a friendly country. The preliminary stages are over, we are shortlisted.”
On the other hand, Pakistan has been also invited by Türkiye to participate in the TurAF’s National Combat Aircraft (KAAN TF-X) Program. In an interview dated August 21, 2016, at the state-owned television network PTV, then Pakistan’s Minister of Defense Production (MoDP) Rana Tanveer HUSSAIN revealed that Türkiye had invited Pakistan to participate in the development of its next-generation fighter program. TUSAŞ is currently working with approximately 60 engineers as part of the MMU/TF-X Program at the Pakistan Office established in a university campus in Pakistan. These Pakistani engineers, who are TUSAŞ employees, are led by a highly experienced engineer of Pakistani origin who previously worked at Lockheed Martin. The number of engineers working at TUSAŞ Pakistan Office is expected to reach 100 soon. TUSAŞ also has a plan to open an office in the Technopark established on the old airport campus in the capital city of Islamabad. According to our sources, the engineering team in Pakistan will complete the production of the scale model of the MMU/TF-X this year and will conduct a series of flight tests.
Pakistan Defense Budget Amid Fiscal Availability Problem & Political and Economic Crisis
Pakistan is going through a very difficult financial time in terms of fiscal availability stemming from ongoing political and economic crisis. However, despite all the difficulties, the Nation of Pakistan is still trying its best to ensure that the Defense Forces are able to meet their basic needs.
The Pakistani Government presented the annual budget for the fiscal year 2023-2024 in parliament in June 2023, totaling 14.4 trillion Rupees (PKR, approximately US$50.4 billion) amid political tensions and high inflation. Finance Minister Ishaq DAR set a 3.5% GDP growth target for next year in his budget presentation to the National Assembly. Despite depleted foreign reserves and an economic crisis, the Pakistani Government has allocated 1.804 trillion Rupees (around US$6.396 Billion) for defense in the budget, a 13% increase (in Rupees value) over the previous year. In US$ figures the defense budget has decreased by over 3% in comparison to the previous year. There has been a constant decrease in the Pakistan defense budget since FY 21-22. The defense budget makes up nearly 1.7% of the GDP and 12.5% of the total expenditure planned by the Pakistani Government for the next year. Last year, PKR1.57 trillion was allocated for defense affairs and services. However, it was later revised higher to PKR1.59 trillion (US$ 7.1 Billion). A breakdown of the latest allocation reveals that the Army, as always, got the lion’s share of PKR824.6 billion of the total budget, followed by the Pakistan Air Force PKR368.5 billion, and the Pakistan Navy PKR188.2 billion.
Even though they have a limited budget, the Pakistan Ministry of Defense is confident that they will be able to meet the essential needs of the Pakistani Armed Forces with the budget that is being made available and under the current circumstances.
Pakistan maintains in good relations with China, Türkiye, and Arab countries, which are always ready to help (to provide credits to finance its defense programs) in whatever way possible. Pakistan also receives additional help from its friends, especially China and some Middle Eastern countries, and even Türkiye, despite its financial challenges, and has been very forthcoming in extending payment schedules when Pakistan face difficulties. Pakistan also has a fairly-good working relationship with the US in certain areas and specific subjects. Even its friends stand with Pakistan in whatever way they can, Pakistan believes that a country with significant defense responsibilities like them should be able to meet its own defense needs. Thus, the country strives to base its defense capability on its own resources, which means that Pakistan's defense planning cannot rely solely on the availability of support from brotherly and friendly countries.
Pakistan Defense Industry & Pakistani-Turkish Defense Industrial Relationship
The defense industry of Pakistan has come a long way from dependency to desired self-reliance through enhanced capabilities, improved facilities and upgraded technologies. Through concerted efforts, today these industries have grown into well-established entities and have developed the potential for exporting defense equipment to international markets. This export potential holds key to Pakistan’s mutually rewarding relations with international fraternity for maintaining global peace and security.
Pakistani-Turkish relations have expanded exponentially over the last decade and the defense industries of Pakistan and Türkiye have been working together for more than two decades. The countries will consolidate their work and look ahead to new fields, including communication equipment, electronic warfare, unmanned aerial vehicles and advanced fighters.
Pakistan’s relationship with Turkish defense companies is robust. During last three decades Turkish defense firms such as ASELSAN, TUSAŞ, STM, METEKSAN SAVUNMA have established business ties with Pakistan’s NRTC, Pakistan Aeronautical Complex (PAC), Pakistani Karachi Shipyard and Pakistani state owned conglomerate Global Industrial & Defense Solutions (GIDS) under different defense programs.
ASELSAN and Pakistan's NRTC have been partners for more than three decades. ASELSAN realized the first defense electronics export to Pakistan in 1989. Under the contract, PRC/VRC 4600 series combat area tactical radios were manufactured in the NRTC facilities in Pakistan under an ASELSAN license. In the late 1990s, under a separate contract ASELSAN’s PRC/VRC 9600 series frequency hopping radios were produced again in NTRC’s facilities under license; and ASELSAN also realized the first export of PRC/VRC-9661 series software defined radios to Pakistan under a US$204 million contract awarded on June 30, 2010. The first party radio sets were delivered to Pakistan in 2011. During IDEF ‘23 Fair TUSAŞ and GIDS signed an agreement regarding Wind Tunnel Testing facilities. GIDS will provide Pakistan’s expertise to TUSAŞ. Pakistan has several wind tunnels including both Subsonic and Supersonic wind tunnel testing facilities. GIDS also showcased a scale model of the wind tunnel during IDEF ‘23 at its stand. TUSAŞ and GIDS have been cooperating in the field of wind tunnel testing since 2019, when the first contract was inked.
So, currently cooperation between Pakistan and Türkiye in defense industry field is excellent. And all the existing projects indicate significant potential for further cooperation. Pakistan would welcome further involvement from Türkiye now that it has made substantial progress in the defense industry. It would be beneficial for Türkiye to establish joint ventures (JVs) in Pakistan to tap into the defense industry market and make use of the low-cost labor that is available in Pakistan. The Pakistan MoD is ready to facilitate any such arrangement if the need ever arises. Türkiye is more than welcome to make any kind of investment in Pakistan's defense industry. Any investment of Türkiye in Pakistan's defense industry will be welcomed.
Pakistan is open to collaboration in every field. However, the Pakistani side primarily aims to consolidate the areas where there is already strong cooperation between the defense industry sectors of the two countries and where there is room for further expansion. Shipbuilding and ship design, including submarine design, are areas where Pakistan is already working very well with STM and ASFAT. Türkiye and Pakistan are also working together on small arms. Regarding small arms, Pakistan Ministry of Defense Production has already received inquiries from some Turkish companies about establishing joint production facilities in Pakistan. Naturally, if they establish a joint production facility in Pakistan and it makes sense for them, it will not only serve the Pakistan market but could also cater to third countries. Communication equipment, electronic warfare, electronic countermeasures and Unmanned Aerial Vehicles, both combat and non-combat (surveillance) versions are other industries where Pakistan would like to see more cooperation between the brotherly two countries. Unmanned Vehicles are becoming increasingly relevant on the modern battlefield. The demand for such vehicles is growing, and there is a lot of potential for joint development, design, and manufacturing with Pakistan, that is thrilled to see a local design capability working jointly with Turkish counterparts. That is indeed the way forward.
So, I believe there is a vast scope for working together on these projects. Additionally, I see no barriers to collaboration in areas where no third party is involved. Türkiye, as a brotherly nation has already offered its technologies and facilities to Pakistan, and the same has already been applied to us. The only requirement is that we make a solid business case for joint collaboration to achieve the best outcomes for both countries
