World News: 11:44 GMT Tuesday 14th January 2020. [Research and Markets via Globe Newswire via SPi World News]
Dublin, Jan. 14, 2020 (GLOBE NEWSWIRE) -- The report has been added to offering. One of the most attractive defense markets in South Asia, Pakistan is anticipated to invest US$48.6 billion cumulatively over the forecast period, compared to US$42.3 billion spent during 2015-2019. Expenditure is anticipated to focus more on the procurement of equipment to augment air defense capabilities, enhance the operational capabilities of the current fleet of naval vessels, and better communication and surveillance systems.The share of capital expenditure as a percentage of overall defense expenditure is anticipated to rise from an average of 36.8% during 2015-2019 to 37.8% over the forecast period.The Pakistani MoD is expected to invest in land based C4ISR, conventional diesel electric submarine, multirole aircraft, airborne C4ISR, missile defense system, attack helicopters, Main Battle Tanks (MBT), corvettes MRO, and frigates.Pakistan is one of the major non-NATO allies of the US and a significant partner with China in the area of defense and security equipment development. The internal instability caused by terrorist groups along with Pakistan's long standing territorial dispute with neighbor countries are major factors driving the year on year increase the Pakistani defense budget. Insurgencies in Balochistan and Khyber Pakhtunkhwa, rising terrorism and territorial dispute with India and Afghanistan are key issues which are expected to propel spending of government in defense sector.Pakistan is expected to spend US$48.5 billion on defense over 2020-2024 to manage internal instability and bolster its defense capabilities with respect to India. The country's total defense budget, excluding US aid has increased at sluggish rate over 2015-2019, with a CAGR of 0.69%, the country invested US$7.6 billion in the defense sector in 2015, which further increased to US$7.8 billion in 2019. The defense budget of Pakistan decreased drastically from US$9.4 billion in 2018 to US$7.8 billion due to economic instability and turmoil which has resulted in depreciation of Pakistani currency against US dollar.Between 2015 and 2019, Pakistan's average capital expenditure allocation was 36.8% of the total defense budget, while its revenue expenditure allocation was 63.2%. The country's military hardware upgrade strategies are expected to increase the average capital allocation to 37.8% over the forecast period. Pakistan's homeland security (HLS) expenditure, targeted towards the prevention of drug smuggling, human trafficking, robbery, corruption, and cyber-attacks, is on the increase due to the growing instances of criminal and illicit activities within the nation. HLS expenditure, valued at US$1.0 billion in 2019, grew from US$0.9 billion in 2015, at a CAGR of 2.68%.Pakistan's domestic defense industry is able to fulfill the majority of the national requirements for low and mid-market technology defense systems, but is largely unable to supply technologically advanced defense systems. US was once biggest exporter of arms to the Pakistan however the rising tensions between these two countries has considerably affected the weapons sales. From 2014-2018 there is large reduction in the arms transfer between these two countries. However, the Pakistani export market is set to gradually grow over the forecast period, as the country begins to develop high quality indigenous defense systems.This report provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news. The report offers detailed analysis of Pakistani defense industry with market size forecasts covering the next five years. The report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.
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Globe Newswire: 11:44 GMT Tuesday 14th January 2020
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