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 country's 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 Pakistan's 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), 2007-2011
Table 2: Pakistani Defense Expenditure (US$ billion), 2012-2016
Table 3: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 2007-2011
Table 4: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 2012-2016
Table 5: Pakistani Defense Expenditure as a Percentage of GDP, 2007-2011
Table 6: Pakistani Defense Expenditure as a Percentage of GDP, 2012-2016
Table 7: Benchmarking with Key Markets - 2007-2011 vs 2012-2016
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), 2007-2011
Figure 2: Pakistani Defense Expenditure (US$ billion), 2012-2016
Figure 3: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 2007-2011
Figure 4: Pakistani Defense Budget Split Between Capital and Revenue Expenditure, 2012-2016
Figure 5: Pakistani Defense Budget Allocation Between Services (%), 2011
Figure 6: Pakistani Defense Expenditure as a Percentage of GDP, 2007-2011
Figure 7: Pakistani Defense Expenditure as a Percentage of GDP, 2012-2016
Figure 8: ICD Research Terrorism Heat Map
Figure 9: Benchmarking with Key Markets - 2007-2011 vs 2012-2016
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 (%), 2005-2010
Figure 14: Pakistani Exports by Supplier and Equipment Type (%), 2005-2010
Figure 15: Industry Dynamics - Porter's Five Forces Analysis
Figure 16: Karachi Stock Exchange Market Capitalization, 2003 - 2009
Figure 17: Pakistani FDI Inflows by Industry (US$ million), 2003-2009
Figure 18: Pakistani Deployment of Credit by Industry (US$ million), 2003-2009
Figure 19: Pakistani GDP Value at Constant Prices, 2003-2015
Figure 20: Pakistani GDP Per Capita at Constant Prices, 2003-2015
Figure 21: Pakistani GDP at Current Prices, 2003-2015
Figure 22: Pakistani GDP Per Capita at Current Prices, 2003-2015
Figure 23: Pakistani GDP Split by Key Sectors 2003 Vs 2009
Figure 24: Pakistani Agriculture Net Output Value at Current Prices (Local Currency), 2003-2015
Figure 25: Pakistani Agriculture Net Output Value at Current Prices (US$ billion), 2003-2015
Figure 26: Pakistani Agriculture Net Output at Current Prices as a Percentage of GDP, 2003-2015
Figure 27: Pakistani Manufacturing Net Output at Current Prices (Local Currency), 2003-2015
Figure 28: Pakistani Manufacturing Net Output at Current Prices (US$), 2003-2015
Figure 29: Pakistani Manufacturing Net Output at Current Prices as a Percentage of GDP,2003-2015
Figure 30: Pakistani Mining, Manufacturing and Utilities Net Output at Current Prices (Local Currency), 2003-2015
Figure 31: Pakistani Mining, Manufacturing and Utilities Net Output at Current Prices (US$), 2003-2015
Figure 32: Pakistani Mining, Manufacturing, Utilities Net Output at Current Prices as a Percentage of GDP, 2003-2015
Figure 33: Pakistani Construction Net Output at Current Prices (Local Currency), 2003-2015
Figure 34: Pakistani Construction Net Output at Current Prices (US$ bn), 2003-2015
Figure 35: Pakistani Construction Net Output, at Current Prices as a percentage of GDP,2003-2015
Figure 36: Pakistani Crude Steel Production, 2003-2015
Figure 37: Pakistani Crude Oil Consumption, 2003-2015
Figure 38: Pakistani Inflation Rate, 2003-2015
Figure 39: Pakistani Fiscal Deficit as a percentage of GDP, 2003-2015
Figure 40: Pakistani Exports as a Percentage of GDP, 2003-2015
Figure 41: Pakistani Imports as a Percentage of GDP, 2003-2015
Figure 42: Pakistani Exports Growth, 2003-2015
Figure 43: Pakistani Imports Growth, 2003-2015
Figure 44: Pakistani External Debt as a Percentage of GDP, 2003-2009
Figure 45: Pakistani Exchange Rate US$-PKR (Annual Average), 2003-2009
Figure 46: Pakistani Exchange Rate (End of Fiscal), 2003-2009
Figure 47: Pakistani Debt Service Ratio, 2003-2009
Figure 48: Pakistani Passenger Vehicle Production, 2003-2015
Figure 49: Pakistani Commercial Vehicle Production, 2003-2015
Figure 50: Pakistani Automotive Components Exports, 2003-2015
Figure 51: Pakistani Automotive Components Imports, 2003-2015
Figure 52: Pakistani Passenger Car Penetration (per 1000 people), 2003-2015
Figure 53: Pakistani Total Installed Capacity for Electricity Generation, 2003-2015
Figure 54: Pakistani Installed Capacity for Conventional Thermal Electricity Generation, 2003-2015
Figure 55: Pakistani Electricity Production, 2003-2015
Figure 56: Pakistani Installed Capacity for Hydro-electricity Generation, 2003-2015
Figure 57: Pakistani Installed Capacity for Renewable Electricity Generation, 2003-2015
Figure 58: Pakistani Electric Power Consumption, 2003-2015
Figure 59: Pakistani Healthcare Expenditure, 2003-2015
Figure 60: Pakistani Healthcare Expenditure as a Percentage of GDP, 2003-2015
Figure 61: Pakistani Per Capita Healthcare Expenditure, 2003-2015
Figure 62: Pakistani R&D Expenditure as a Percentage of GDP, 2003-2015
Figure 63: Pakistani Internet Subscribers, 2003-2015
Figure 64: Pakistani Broadband Internet Subscribers, 2003-2015
Figure 65: Pakistani Mobile Phone Penetration (per 100 people), 2003-2015
Figure 66: Pakistani Size of Labor Force (in 15-59 age group), 2003-2015
Figure 67: Pakistani Unemployment Rate, 2003-2015
Figure 68: Pakistani Annual Disposable Income, 2003-2015
Figure 69: Pakistani Annual Per Capita Disposable Income, 2003-2015
Figure 70: Pakistani Consumer Expenditure on Food, 2003-2015
Figure 71: Pakistani Annual Per Capita Consumer Expenditure on Food, 2003-2015
Figure 72: Pakistani Urban and Rural Population, 2003-2015
Figure 73: Pakistani Females as a Percentage of the Population, 2003-2015
Figure 74: Pakistani Males as a percentage of the Population, 2003-2015
Figure 75: Pakistani Mean Age of Population, 2003-2015
Figure 76: Pakistani Median Age of Population, 2003-2015
Figure 77: Pakistani Population Density, 2003-2015
Figure 78: Pakistani Population Distribution by Age, 2003-2015
Figure 79: Pakistani Male Population Distribution by Age, 2003-2015
Figure 80: Pakistani Female Population Distribution by Age, 2003-2015
Figure 81: Number of Households in Pakistan, 2003-2015
Figure 82: Global Terrorism Heat Map
Figure 83: Pakistani Transparency Index, 2003-2009
