Ministry of Defence Production contributes over Rs 260bn to economy

MoDP's contributions include Rs 88.6 billion from land sales, Rs 116.25 billion from exports, Rs 21.75 billion in taxes and duties, Rs 1 billion in CSR, and Rs 32.5 billion in import substitution

The Ministry of Defence Production (MoDP) has contributed over Rs 260 billion to Pakistan’s economy during the first year of the current government’s tenure.

According to official documents, the MoDP’s contributions include Rs 88.6 billion from land sales, Rs 116.25 billion from exports, Rs 21.75 billion in taxes and duties, Rs 1 billion in Corporate Social Responsibility (CSR), and Rs 32.5 billion in import substitution. 

The ministry’s efforts align with the Prime Minister’s vision of developing a self-reliant defense production industry, increasing job opportunities, generating tax revenue, reducing reliance on imports, and boosting exports to earn foreign exchange.

The MoDP also successfully organized IDEAS-2024, attracting 557 firms, including 333 foreign companies, with 300 foreign delegates from 50 countries. The event led to 82 memorandums of understanding (MOUs) for joint ventures and collaborations, further enhancing export potential.

Stakeholders have praised the Ministry of Defence Production for its consistent and reliable support in providing arms, ammunition, and security equipment to various defense and security agencies. However, there is a continued need for transparency and efficiency in the supply chain to meet the evolving security demands.

Pakistan’s defense production sector began with the establishment of Pakistan Ordnance Factories (POF) in Wah in 1951. Over the years, additional entities were set up, expanding the sector. Today, under the MoDP, several defense production establishments (DPEs) operate, including POF, Heavy Industries Taxila (HIT), Pakistan Aeronautical Complex (PAC), National Radio & Telecommunication Corporation (NRTC), and Karachi Shipyard & Engineering Works (KS&EW). This public sector network is further supported by over 150 private industries contributing to national defense production.

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