In his recent interview with state-owned PTV, Minister of Defence Production (MoDP) Rana Tanveer Hussain stated that Pakistan Ordnance Factories (POF)’s exports reached $100 million U.S. for the year. He praised the achievement, noting that POF’s exports in 2013 stood at $20-30 million U.S.
Comment and Analysis
In an earlier article on Quwa, POF was described as “Pakistan’s ‘best’ defence industry player.” Pakistan’s cheaper currency and POF’s ability to produce quality small arms and ammunition has positioned it as a valuable supplier to armies, law enforcement agencies, and civil defence markets in a number of markets, especially the Arab Gulf and Africa. Mr. Hussain’s statements confirm that POF has a noteworthy level of potential, one that could – if supported – transform it into an industry leading vendor.
Long-term growth and success will be dependent on how successfully POF and its product offerings are modernized and brought up to emerging standards. Having signed a Memorandum of Understanding (MoU) with Sir Meccanica, an industrial vendor specializing in providing systems for manufacturing, it seems POF has the plan to upgrade its production facilities. The current assault (and battle) rifle competition being held by the Pakistan Army could also result in POF managing a new rifle design, one that could fully supplant its legacy Heckler and Koch G-3 line.
It will be interesting to see if the Pakistan Army’s assault rifle program involves a commercial offset clause. While it is expected that POF will produce the selected design under license, it would be different to see overseas vendors link POF into their respective supply chains. For example, as part of an offset package POF could be contracted to produce specific components for a vendor’s entire assault/battle rifle line. This avenue could potentially be another long-term revenue source for POF.
If Pakistan were to make inroads into the American market and sell to civilian gun owners (remember…80% of the world’s small arms are owned by American civilians!), then POF can make a massive amount of money. And if Pakistan were to sell its next generation rifle to US civilians, then that would be even better.
There isn’t a better time to get into the American market than right now. Pakistan can very likely sell huge amounts of cheap .308, 9 mm, and 7.62 x 39 and make a killing. If Pakistan picks the AK-103 for its next rifle and receives the ToT, that too would be a huge hit as well. The POF MP-5 variant is already for sale in the US, but at an extremely high price. If POF can sell the AK-103 for at or under one thousand dollars along with the ammunition I listed….I can see POF profits double or even triple.
The POF MP5 in the states is way cheaper then the original though… that’s why it sells so well.
Yeah, but compared to other 9 mm platforms out there in the American market, it doesn’t necessarily stand out. The best areas thsr POF can shine would be ammunition import. Brass cased .308 is extremely expensive in the US…I’m sure POF can offer quality .308 for a very good price
What? Extremely high price of HK MP5!!!. Its 1500$. When compared to the price of MP5’s manufactured by Heckler & Koch in Germany, its very cheap and remember! its not a clone. Even the HK clones are more expensive in America.
And the other factor is the taxes imposed by US government on import as its not an AR platform.
High import taxes does not explain why guns such as Romanian Wasr-10s are sold for around 600 dollars for example. Not all HK clones are expensive…the HK G3 clone goes for no more than 700 dollars.