1 Introduction 1.1 What is this Report About? 1.2 Definitions 1.3 Summary Methodology 1.4 ICD Research Terrorism Index 1.5 About ICD Research 1.6 About Strategic Defense Intelligence 2 Executive Summary 3 Market Attractiveness and Emerging Opportunities 3.1 Defense Market Size Historical and Forecast 3.1.1 Pakistani annual defense expenditure to reach US$XX billion by 2016 3.1.2 Hostile neighbouring disputes, internal instability and the war on terror expected to drive defense expenditure 3.2 Analysis of Defense Budget Allocation 3.2.1 Capital expenditure share expected to be maintained at an average of XX% over the forecast period 3.2.2 Army receives the largest share of the defense budget to prevent internal instability 3.2.3 The countrys defense expenditure as a percentage of GDP declined during the review period 3.3 Homeland Security Market Size and Forecast 3.3.1 Pakistan is at a significant risk from external and internal threats 3.3.2 PCCF and PSS expected to drive homeland security expenditure 3.4 Benchmarking with Key Global Markets 3.4.1 Pakistani defense expenditure expected to increase at a CAGR of XX% over the forecast period 3.4.2 Pakistan ranks thirty-fifth in global defense spend 3.4.3 Pakistans defense expenditure expected to reach XX% of GDP by 2016 3.4.4 Pakistan is one of the most terror prone countries in the world 3.5 Market Opportunities: Key Trends and Drivers 3.5.1 Indigenous submarine development set to drive naval defense procurements 3.5.2 Development of indigenous UAV and aerial refuelling aircraft, and refurbishment of existing systems expected to drive air force defense procurement 3.5.3 Demand for various types of helicopters to increase to counter terrorism 4 Defense Procurement Market Dynamics 4.1 Import Market Dynamics 4.1.1 Counterinsurgency and territorial dispute with India expected to increase defense imports 4.1.2 US and China were the leading suppliers of arms to Pakistan during the review period 4.2 Export Market Dynamics 4.2.1 DEPO expected to increase defense exports 5 Industry Dynamics 5.1 Five Forces Analysis 5.1.1 Bargaining power of supplier: low 5.1.2 Bargaining power of buyer: high 5.1.3 Barrier to entry: medium to high 5.1.4 Intensity of rivalry: low to medium 5.1.5 Threat of substitution: medium 6 Market Entry Strategy 6.1 Market Regulation 6.1.1 Defense procurements to follow the public procurement policy 6.2 Market Entry Route 6.2.1 Foreign firms enter the Pakistani defense industry through JVs or government-to-government deals 6.3 Key Challenges 6.3.1 Bureaucracy and lack of transparency in Pakistani defense 6.3.2 Unstable political system coupled with internal instability discourages foreign participation 7 Competitive Landscape and Strategic Insights 7.1 Competitive Landscape Overview 7.1.1 Foreign suppliers manufacture defense systems overseas and deliver to Pakistan 7.1.2 Growing domestic defense industry is predominantly state run 7.2 Key Foreign Companies 7.2.1 Boeing: overview 7.2.2 Boeing: products and services 7.2.3 Boeing: recent announcements and strategic initiatives 7.2.4 Boeing: alliances 7.2.5 Boeing: recent contract wins 7.2.6 Boeing: financial analysis 7.2.7 Howaldtswerke-Deutsche Werft: overview 7.2.8 Howaldtswerke-Deutsche Werft: products and services 7.2.9 Howaldtswerke-Deutsche Werft: recent announcements and strategic initiatives 7.2.10 Howaldtswerke-Deutsche Werft: alliances 7.2.11 Howaldtswerke-Deutsche Werft: recent contracts wins 7.2.12 Howaldtswerke-Deutsche Werft: financial analysis 7.2.13 Raytheon: overview 7.2.14 Raytheon: products and services 7.2.15 Raytheon: recent announcements and strategic initiatives 7.2.16 Raytheon: alliances 7.2.17 Raytheon: recent contract wins 7.2.18 Raytheon: financial analysis 7.2.19 Lockheed Martin: overview 7.2.20 Lockheed Martin: products and services 7.2.21 Lockheed Martin: recent announcements and strategic initiatives 7.2.22 Lockheed Martin: alliances 7.2.23 Lockheed Martin: recent contract wins 7.2.24 Lockheed Martin: financial analysis 7.3 Key Domestic Companies 7.3.1 Karachi Shipyard & Engineering Works: overview 7.3.2 Karachi Shipyard & Engineering Works: products and services 7.3.3 Karachi Shipyard & Engineering Works: recent announcements and strategic initiatives 7.3.4 Karachi Shipyard & Engineering Works: alliances 7.3.5 Karachi Shipyard & Engineering Works: recent contract wins 7.3.6 Karachi Shipyard & Engineering Works: financial analysis 7.3.7 National Defense Complex: overview 7.3.8 National Defense Complex: products and services 7.3.9 National Defense Complex: recent announcements and strategic initiatives 7.3.10 National Defense Complex: alliances 7.3.11 National Defense Complex: recent contract wins 7.3.12 National Defense Complex: financial analysis 7.3.13 National Engineering and Scientific Commission: overview 7.3.14 National Engineering and Scientific Commission: products and services 7.3.15 National Engineering and Scientific Commission: recent announcements and strategic initiatives 7.3.16 National Engineering and Scientific Commission: alliances 7.3.17 National Engineering and Scientific Commission: recent contract wins 7.3.18 National Engineering and Scientific Commission: financial analysis 7.3.19 Pakistan Aeronautical Complex: overview 7.3.20 Pakistan Aeronautical Complex: products and services 7.3.21 Pakistan Aeronautical Complex: recent announcements and strategic initiatives 7.3.22 Pakistan Aeronautical Complex: alliances 7.3.23 Pakistan Aeronautical Complex: recent contract wins 7.3.24 Pakistan Aeronautical Complex: financial analysis 7.3.25 Pakistan Ordnance Factories: overview 7.3.26 Pakistan Ordnance Factories: products and services 7.3.27 Pakistan Ordnance Factories: recent announcements and strategic initiatives 7.3.28 Pakistan Ordnance Factories: alliances 7.3.29 Pakistan Ordnance Factories: recent contract wins 7.3.30 Pakistan Ordnance Factories: financial analysis 7.3.31 Military Vehicle Research & Development Establishment: overview 7.3.32 Military Vehicle Research & Development Establishment: products and services 7.3.33 Military Vehicle Research & Development Establishment: recent announcements and strategic initiatives 7.3.34 Military Vehicle Research & Development Establishment: alliances 7.3.35 Military Vehicle Research & Development Establishment: recent contract wins 7.3.36 Military Vehicle Research & Development Establishment: financial analysis 7.3.37 National Radio Telecommunication Corporation: overview 7.3.38 National Radio Telecommunication Corporation: products and services 7.3.39 National Radio Telecommunication Corporation: recent announcements and strategic initiatives 7.3.40 National Radio Telecommunication Corporation: alliances 7.3.41 National Radio Telecommunication Corporation: recent contract wins 7.3.42 National Radio Telecommunication Corporation: financial analysis 7.3.43 Pakistan Space and Upper Atmosphere Research Commission: overview 7.3.44 Pakistan Space and Upper Atmosphere Research Commission: products and services 7.3.45 Pakistan Space and Upper Atmosphere Research Commission: recent announcements and strategic initiatives 7.3.46 Pakistan Space and Upper Atmosphere Research Commission: alliances 7.3.47 Pakistan Space and Upper Atmosphere Research Commission: recent contract wins 7.3.48 Pakistan Space and Upper Atmosphere Research Commission: financial analysis 7.3.49 Air Weapons Complex: overview 7.3.50 Air Weapons Complex: products and services 7.3.51 Air Weapons Complex: recent announcements and strategic initiatives 7.3.52 Air Weapons Complex: alliances 7.3.53 Air Weapons Complex: recent contract wins 7.3.54 Air Weapons Complex: financial analysis 7.3.55 Daudsons Armory: overview 7.3.56 Daudsons Armory: products and services 7.3.57 Daudsons Armory: recent announcements and strategic initiatives 7.3.58 Daudsons Armory: alliances 7.3.59 Daudsons Armory: recent contract wins 7.3.60 Daudsons Armory: financial analysis 7.3.61 Directorate General Munitions Production (DGMP): overview 7.3.62 Directorate General Munitions Production (DGMP): products and services 7.3.63 Directorate General Munitions Production (DGMP): recent announcements and strategic initiatives 7.3.64 Directorate General Munitions Production (DGMP): alliances 7.3.65 Directorate General Munitions Production (DGMP): recent contract wins 7.3.66 Directorate General Munitions Production (DGMP): financial analysis 7.3.67 Heavy Industries Taxila: overview 7.3.68 Heavy Industries Taxila: products and services 7.3.69 Heavy Industries Taxila: recent announcements and strategic initiatives 7.3.70 Heavy Industries Taxila: alliances 7.3.71 Heavy Industries Taxila: recent contract wins 7.3.72 Heavy Industries Taxila: financial analysis 7.3.73 The Heavy Mechanical Complex: overview 7.3.74 The Heavy Mechanical Complex: products and services 7.3.75 The Heavy Mechanical Complex: recent announcements and strategic initiatives 7.3.76 The Heavy Mechanical Complex: alliances 7.3.77 The Heavy Mechanical Complex: recent contract wins 7.3.78 The Heavy Mechanical Complex: financial analysis 7.3.79 SATUMA: overview 7.3.80 SATUMA: products and services 7.3.81 SATUMA: recent announcements and strategic initiatives 7.3.82 SATUMA: alliances 7.3.83 SATUMA: recent contract wins 7.3.84 SATUMA: financial analysis 8 Business Environment and Country Risk 8.1 Business Confidence 8.1.1 Market Capitalization Trend Karachi Stock Exchange, Pakistan 8.1.2 FDI Inflows by Industry 8.1.3 Deployment of Credit by Sector 8.2 Economic Performance 8.2.1 GDP at Constant Prices 8.2.2 GDP per Capita at Constant Prices 8.2.3 GDP at Current Prices 8.2.4 GDP Per Capita at Current Prices 8.2.5 GDP Split by Key Segments 8.2.6 Agriculture Agriculture Net Output Value at Current Prices (Local Currency) 8.2.7 Agriculture Agriculture Net Output Value at Current Prices (US Dollar) 8.2.8 Agriculture Agriculture Net Output at Current Prices as Percentage of GDP 8.2.9 Manufacturing Manufacturing Net Output at Current Prices (Local Currency) 8.2.10 Manufacturing Manufacturing Net Output at Current Prices (US Dollar) 8.2.11 Manufacturing Manufacturing Net Output-Current Prices as Percentage of GDP 8.2.12 Manufacturing Mining, Manufacturing and Utilities at Current Prices (Local Currency) 8.2.13 Manufacturing Mining, Manufacturing and Utilities at Current Prices (US Dollars) 8.2.14 Manufacturing Mining, Manufacturing and Utilities at Current Prices as Percentage of GDP 8.2.15 Construction Construction Net Output at Current Prices (Local Currency) 8.2.16 Construction Construction Net Output at Current Prices 8.2.17 Construction Construction Net Output-Current Prices as a percentage of GDP 8.2.18 Industry Crude Steel Production 8.2.19 Industry - Crude Oil Consumption 8.2.20 Inflation Rate 8.2.21 Fiscal Deficit as a Percentage of GDP 8.2.22 Exports as a Percentage of GDP 8.2.23 Imports as a Percentage of GDP 8.2.24 Exports Growth 8.2.25 Imports Growth 8.2.26 External Debt as Percentage of GDP 8.2.27 Exchange Rate US$PKR (Annual Average) 8.2.28 Exchange Rate US$-PKR (End of Fiscal) 8.2.29 Debt Service Ratio 8.3 Infrastructure Quality and Availability 8.3.1 Transport Passenger Vehicle Production Volume 8.3.2 Transport Commercial Vehicle Production Volume 8.3.3 Transport Automotive Components Export Trend 8.3.4 Transport Automotive Products Import Trend 8.3.5 Transport Passenger Car Penetration 8.3.6 Utilities Total Installed Capacity for Electricity Generation 8.3.7 Utilities Installed Capacity for Conventional Thermal Electricity Generation 8.3.8 Utilities Electricity Production 8.3.9 Utilities Installed Capacity for Hydro-electricity Generation 8.3.10 Utilities Installed Capacity for Renewable Electricity Generation 8.3.11 Utilities Electric Power Consumption 8.3.12 Healthcare Healthcare Expenditure 8.3.13 Healthcare Healthcare Expenditure as percentage GDP 8.3.14 Healthcare Healthcare Expenditure Per Capita 8.3.15 Technology R&D Expenditure as a percentage of GDP 8.3.16 Communication Total Internet Subscribers 8.3.17 Communication Broadband Internet Subscribers 8.3.18 Communication Mobile Phone Penetration Rate 8.4 Labor Force 8.4.1 Labor Force 8.4.2 Unemployment Rate 8.5 Demographics 8.5.1 Annual Disposable Income 8.5.2 Annual Per Capita Disposable Income 8.5.3 Annual Consumer Expenditure on Food 8.5.4 Annual Per Capita Consumer Expenditure on Food 8.5.5 Urban and Rural Population 8.5.6 Females as a Percentage of the Population 8.5.7 Males as a Percentage of the Population 8.5.8 Mean Age of Population 8.5.9 Median Age of Population 8.5.10 Population Density 8.5.11 Age Distribution Total Population 8.5.12 Age Distribution-Male Population 8.5.13 Age Distribution-Female Population 8.5.14 No. of Households 8.6 Political and Social Risk 8.6.1 Political Stability 8.6.2 Terrorism Index 8.6.3 Transparency Index 9 Appendix 9.1 Contact Us 9.2 About ICD Research 9.3 Disclaimer
List of Tables
Table 1: Pakistani Defense Expenditure (US$ billion), 20072011 Table 2: Pakistani Defense Expenditure (US$ billion), 20122016 Table 3: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 20072011 Table 4: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 20122016 Table 5: Pakistani Defense Expenditure as a Percentage of GDP, 20072011 Table 6: Pakistani Defense Expenditure as a Percentage of GDP, 20122016 Table 7: Benchmarking with Key Markets 20072011 vs 20122016 Table 8: ICD Research Terrorism Index Table 9: Key Foreign Companies and Operations in the Pakistani Defense Industry Table 10: Boeing Product Focus Table 11: Boeing Recent Contract Wins Table 12: Howaldtswerke-Deutsche Werft Product Focus Table 13: Howaldtswerke-Deutsche Werft Recent Contract Wins Table 14: Raytheon Product Focus Table 15: Raytheon Recent Contract Wins Table 16: Lockheed Martin Product Focus Table 17: Lockheed Martin Recent Contract Wins Table 18: Karachi Shipyard & Engineering Works Product Focus Table 19: National Defense Complex Product Focus Table 20: National Engineering and Scientific Commission Product Focus Table 21: Pakistan Aeronautical Complex Product Focus Table 22: Pakistan Ordnance Factories Product Focus Table 23: Pakistan Ordnance Factories Recent Contract Wins Table 24: Military Vehicle Research & Development Establishment Product Focus Table 25: National Radio Telecommunication Corporation Product Focus Table 26: Pakistan Space and Upper Atmosphere Research Commission Product Focus Table 27: Pakistan Space and Upper Atmosphere Research Commission recent contract wins Table 28: Air Weapons Complex product focus Table 29: Air Weapons Complex alliances Table 30: Daudsons Armory product focus Table 31: Directorate General Munitions Production (DGMP) product focus Table 32: Directorate General Munitions Production (DGMP) recent contract wins Table 33: Heavy Industries Taxila product focus Table 34: Heavy Industries Taxila alliances Table 35: Heavy Industries Taxila recent contract wins Table 36: The Heavy Mechanical Complex product focus Table 37: The Heavy Mechanical Complex alliances Table 38: SATUMA product focus Table 39: SATUMA recent contract wins
List of Figures
Figure 1: Pakistani Defense Expenditure (US$ billion), 20072011 Figure 2: Pakistani Defense Expenditure (US$ billion), 20122016 Figure 3: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 20072011 Figure 4: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 20122016 Figure 5: Pakistani Defense Budget Allocation Between Services (%), 2011 Figure 6: Pakistani Defense Expenditure as a Percentage of GDP, 20072011 Figure 7: Pakistani Defense Expenditure as a Percentage of GDP, 20122016 Figure 8: ICD Research Terrorism Heat Map Figure 9: Benchmarking with Key Markets 20072011 vs 20122016 Figure 10: Defense Expenditure of the Largest Military Spenders in the World (US$ Billion), 2011 and 2016 Figure 11: Countries with the Largest Defense Expenditure as a Percentage of GDP (%), 2011 Figure 12: ICD Research Terrorism Index* Figure 13: Pakistani Imports by Supplier and Equipment Type (%), 20052010 Figure 14: Pakistani Exports by Supplier and Equipment Type (%), 20052010 Figure 15: Industry Dynamics Porters Five Forces Analysis Figure 16: Karachi Stock Exchange Market Capitalization, 2003 2009 Figure 17: Pakistani FDI Inflows by Industry (US$ million), 20032009 Figure 18: Pakistani Deployment of Credit by Industry (US$ million), 20032009 Figure 19: Pakistani GDP Value at Constant Prices, 20032015 Figure 20: Pakistani GDP Per Capita at Constant Prices, 20032015 Figure 21: Pakistani GDP at Current Prices, 20032015 Figure 22: Pakistani GDP Per Capita at Current Prices, 20032015 Figure 23: Pakistani GDP Split by Key Sectors 2003 Vs 2009 Figure 24: Pakistani Agriculture Net Output Value at Current Prices (Local Currency), 20032015 Figure 25: Pakistani Agriculture Net Output Value at Current Prices (US$ billion), 20032015 Figure 26: Pakistani Agriculture Net Output at Current Prices as a Percentage of GDP, 20032015 Figure 27: Pakistani Manufacturing Net Output at Current Prices (Local Currency), 20032015 Figure 28: Pakistani Manufacturing Net Output at Current Prices (US$), 20032015 Figure 29: Pakistani Manufacturing Net Output at Current Prices as a Percentage of GDP, 20032015 Figure 30: Pakistani Mining, Manufacturing and Utilities Net Output at Current Prices (Local Currency), 20032015 Figure 31: Pakistani Mining, Manufacturing and Utilities Net Output at Current Prices (US$), 20032015 Figure 32: Pakistani Mining, Manufacturing, Utilities Net Output at Current Prices as a Percentage of GDP, 20032015 Figure 33: Pakistani Construction Net Output at Current Prices (Local Currency), 20032015 Figure 34: Pakistani Construction Net Output at Current Prices (US$ bn), 20032015 Figure 35: Pakistani Construction Net Output, at Current Prices as a percentage of GDP, 20032015 Figure 36: Pakistani Crude Steel Production, 20032015 Figure 37: Pakistani Crude Oil Consumption, 20032015 Figure 38: Pakistani Inflation Rate, 20032015 Figure 39: Pakistani Fiscal Deficit as a percentage of GDP, 20032015 Figure 40: Pakistani Exports as a Percentage of GDP, 20032015 Figure 41: Pakistani Imports as a Percentage of GDP, 20032015 Figure 42: Pakistani Exports Growth, 20032015 Figure 43: Pakistani Imports Growth, 20032015 Figure 44: Pakistani External Debt as a Percentage of GDP, 20032009 Figure 45: Pakistani Exchange Rate US$PKR (Annual Average), 20032009 Figure 46: Pakistani Exchange Rate (End of Fiscal), 20032009 Figure 47: Pakistani Debt Service Ratio, 20032009 Figure 48: Pakistani Passenger Vehicle Production, 20032015 Figure 49: Pakistani Commercial Vehicle Production, 20032015 Figure 50: Pakistani Automotive Components Exports, 20032015 Figure 51: Pakistani Automotive Components Imports, 20032015 Figure 52: Pakistani Passenger Car Penetration (per 1000 people), 20032015 Figure 53: Pakistani Total Installed Capacity for Electricity Generation, 20032015 Figure 54: Pakistani Installed Capacity for Conventional Thermal Electricity Generation, 20032015 Figure 55: Pakistani Electricity Production, 20032015 Figure 56: Pakistani Installed Capacity for Hydro-electricity Generation, 20032015 Figure 57: Pakistani Installed Capacity for Renewable Electricity Generation, 20032015 Figure 58: Pakistani Electric Power Consumption, 20032015 Figure 59: Pakistani Healthcare Expenditure, 20032015 Figure 60: Pakistani Healthcare Expenditure as a Percentage of GDP, 20032015 Figure 61: Pakistani Per Capita Healthcare Expenditure, 20032015 Figure 62: Pakistani R&D Expenditure as a Percentage of GDP, 20032015 Figure 63: Pakistani Internet Subscribers, 20032015 Figure 64: Pakistani Broadband Internet Subscribers, 20032015 Figure 65: Pakistani Mobile Phone Penetration (per 100 people), 20032015 Figure 66: Pakistani Size of Labor Force (in 1559 age group), 20032015 Figure 67: Pakistani Unemployment Rate, 20032015 Figure 68: Pakistani Annual Disposable Income, 20032015 Figure 69: Pakistani Annual Per Capita Disposable Income, 20032015 Figure 70: Pakistani Consumer Expenditure on Food, 20032015 Figure 71: Pakistani Annual Per Capita Consumer Expenditure on Food, 20032015 Figure 72: Pakistani Urban and Rural Population, 20032015 Figure 73: Pakistani Females as a Percentage of the Population, 20032015 Figure 74: Pakistani Males as a percentage of the Population, 20032015 Figure 75: Pakistani Mean Age of Population, 20032015 Figure 76: Pakistani Median Age of Population, 20032015 Figure 77: Pakistani Population Density, 20032015 Figure 78: Pakistani Population Distribution by Age, 20032015 Figure 79: Pakistani Male Population Distribution by Age, 20032015 Figure 80: Pakistani Female Population Distribution by Age, 20032015 Figure 81: Number of Households in Pakistan, 20032015 Figure 82: Global Terrorism Heat Map Figure 83: Pakistani Transparency Index, 20032009
Companies Mentioned
Boeing, Howaldtswerke-Deutsche Werft , Raytheon, Lockheed Martin, Karachi Shipyard & Engineering Works,National Defense Complex, National Engineering and Scientific Commission, Pakistan Aeronautical Complex, Pakistan Ordnance Factories, Military Vehicle Research & Development Establishment, National Radio Telecommunication Corporation, Pakistan Space and Upper Atmosphere Research Commission,Air Weapons Complex,Daudsons Armory,Directorate General Munitions Production (DGMP),Heavy Industries Taxila,The Heavy Mechanical Complex,SATUMA. |