ISLAMABAD: A parliamentary panel Tuesday was informed that the government is to set up two shipyards in Straits of Hormuz and Karachi besides upgrading the present shipyards.
Secretary Ministry of Defense Production (MoDP) Lt-Gen Sadiq Ali (retired), while briefing the Senate Standing Committee on Defense Production, which met here under the Chairmanship of Senator Lt General (retired) Abdul Qayyum said that the establishment of shipyards in Straits of Hormuz will have extreme strategic importance. The Karachi shipyard will be upgraded and in the near future will capture a large share of global business, he maintained.
The secretary Defense Production apprised the panel of government initiatives for restructuring of the MoDP. He said that the projects were inline with the recommendation was made by the Institutional Reforms Cell in July, 2019.
The PM's office provided guidelines in the report on the re-organisation of the federal government containing a list of executive departments and autonomous bodies; in which the DPE's working under the MoDP were included, he further said.
Chairman Committee Senator Abdul Qayyum stressed the need for flexibility for quick and seamless expansion and growth to capture international markets. The panel asserted that preference must be given to reverse engineering, a strategy that had been successfully adapted by most countries.
The members also emphasised the need for devoting five percent of profits to marketing activities. The committee decided to constitute a three-member committee to provide advice and guidance to the MoDP on strategic affairs.
The panel was briefed in detail by the Ministry of Defence Production (MoDP) on proposed restructuring of the Defence Production Division. It was also briefed by Director General, Defence Export Promotion Organization (DEPO).
The meeting was further informed that inline with the vision of the government and mandate of optimal utilisation of existing human and financial resources two new executive departments have been declared, namely, DEPO and DGRDE, with a focus on marketing indigenous technology and develop partnerships with academia and the private sector.
Cells related to policy/planning, public-private interface, legal advice and technical coordination shall be created within available human resource and budget. A policy board on ship building has been functionalised after 11 years. Creation of a commercial company by the HIT to reduce dependence on defence budget and a think tank to brainstorm innovative ideas are underway as well.
Senator Abdul Qayyum emphasised the importance of research and development in this field, and said this will pave the way for innovation. Funding and marketing efforts needs to be stepped up as well. The ministry informed the Committee that currently it faces zero financial issues and a marketing professional to introduce indigenous technology beyond shores will be hired soon.
The committee stressed the need for consulting with Pakistani diaspora leading similar technology hubs abroad for innovative ideas. This will also introduce Pakistan to prevailing international market and industry trends. Developing links of floor-level professionals with academia is the key for success, he said.
Being briefed by the DG DEPO regarding the strategy formulated for effective involvement of private sector during the IDEAS, permanent status of the DEPO and business plan to achieve self sufficiency, the committee was informed that the department is taking various measures to capture international markets; that include registration of private defense industry by the DEPO for marketing and provision of Export Development Fund (EDF) subsidy.
It will also involve opening of EDF in DEPO for private defense industry through 0.25 percent share out of exports of private industry. Establishment and construction of Defense Expo Centres under DEPO in Karachi, Islamabad and Gwadar will be expedited as well. The meeting was attended by Senator Nuzhat Sadiq, Senator Gul Bashra, Senator Mushahid Hussain Sayed, Senator Nauman Wazir Khattak, Senator Sarfaraz Ahmed Bugti, Senator Muhammad Akram, Senator Anwar Lal Dean, Senator Zeeshan Khanzada, and senior officers of the Ministry of Defence Production along with all concerned.
Copyright Business Recorder, 2020
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