Drones, Radars, & Small Arms: The Untapped Potential of Pakistan’s Niche Defence Export

The defence export sector in Pakistan has experienced rapid growth in recent years. According to state sources, arms sales reached nearly $ 1.3 billion between 2022 and 2024, compared to a few hundred million dollars a decade ago. Over the past few years, Pakistan has been exporting approximately $200-$300 million in military equipment annually, with most of this trade going to around 40 friendly states in Asian and African nations, as well as those in the Middle East. The latest IDEAS 2024 exhibition in Karachi resulted in 82 MoUs (future contracts) worth $30 billion, indicating the high demand for Pakistan-made products. African and East Asian states are promising target markets, where affordability and proven combat performance are the preferred buyer focus. Pakistani exporters, in particular, are targeting niche items such as drones, radars, and infantry weapons that are battle-tested but also of lower prices to establish a foothold in areas where Western suppliers are too expensive.

Combat Proven Drone

Shahpar-II medium-altitude UAV on display at IDEAS 2024. The production of this armed drone is marketed in Pakistan as a low-cost alternative to Chinese and Turkish drones. Pakistan became the fourth nation (after the US, UK, and Israel) to deploy an armed drone in combat when its domestically produced multipurpose Burraq UAV was similarly used in 2015, and such a fact proves that the company not only has battle-proven designs. Its most recent native UCAVs, such as the GIDS Shahpar-II, have been operationally flown by the forces in Pakistan and are currently being exported to other countries. According to Pakistani sources, Shahpar-II is more competent and affordable than the Turkish Bayraktar TB2 drone or the Chinese CH-3/CH-4 drone. For example, GIDS has demonstrated the Shahpar-II shooting laser-guided Barq missiles against moving targets and has shown them to delegations from Nigeria, Kenya, Iraq, Saudi Arabia, and other countries. Briefly, Pakistani UAVs offer a proven design to their customers, which may also appeal to militaries in Africa and Asia with limited budgets.

Cost-Effective Radar

The AM-350S long-range 3D air-surveillance radar (on truck) was introduced and developed by NRTC in 2024. This Gallium-Nitride AESA radar can engage targets at a range of 350 km, indicating Pakistan’s advanced radar technology. The Pakistani defence industry has also entered the field of radar development. The GaN-based AM-350S is an AESA 3D radar with an operating range of 350 km, built by the state-owned enterprise NRTC (National Radio & Telecommunication Corp.) and its partners. Pakistan displayed short-range ground surveillance radars (SR-3D) and motorised air surveillance vehicles. Significantly, NRTC has signed several MoUs on radar and telecom systems with Middle Eastern and African countries, showing that it is interested in exports. The Pakistani units are relatively cheaper and more mobile than large Chinese radar or Western systems, though they lack some leading-edge capabilities. For a long-range mobile radar, such as one manufactured in the US, the cost can be in the tens of millions of dollars; however, Pakistan is likely willing to sell its systems at a significantly lower price to find buyers. Overall, the AESA radars and other sensors supplied by NRTC are expected to become a new export product, with trials and marketing currently underway in markets across Asia and Africa due to their cost-effectiveness.

Competitive Positioning

Overall, Pakistan’s niche lies in offering “good enough” combat equipment at bargain prices. For UAVs and missiles, it is undercutting Western vendors and challenging Chinese and Turkish suppliers by slightly trimming capabilities to achieve reduced costs. In radars, Pakistani AESA systems aim to underbid large foreign systems while providing modern features. In small arms, POF’s products are roughly comparable to budget Chinese firearms (e.g., Norinco variants), but they are generally regarded as more robust and thoroughly tested. The trade-off is that Pakistan’s equipment may lack some advanced electronics or certification; however, Pakistani officials emphasise that local forces’ combat experience demonstrates reliability (e.g., drones used on the 2025 battlefield). In short, compared to global rivals, Pakistan emphasises affordability and serviceability, intending to attract buyers who cannot afford Lockheed/BAE or even higher-end Chinese systems.

Opportunities and Challenges

There are clear opportunities in Pakistan’s chosen niche. Many African and Asian armies have limited budgets and face insurgencies or border threats, situations where Pakistan’s battle-proven, low-cost systems could be attractive. Countries such as Nigeria, Kenya, and Myanmar have already shown interest (e.g., Nigeria discussed Shahpar drones), and Myanmar was the first foreign buyer of Pakistan’s JF-17 fighter jets. IDEAS 2024 itself opened doors: Pakistan signed defence MoUs worth $36 billion when previous deals were included, with new interest flowing from Africa and East Asia. Technical collaborations (for example, a Pakistan-Turkey MOU to co-produce armoured vehicles) also promise joint market entry and cost-sharing.

However, challenges persist. Pakistan’s defence industry does not have the global reputation of its peers; buyers might see Pakistan’s products as less advanced. Export financing and after-sales support can be obstacles since Islamabad has limited credit lines, and local firms still need to develop maintenance networks abroad. Geopolitical factors also play a role: diplomatic pressure from rivals (notably India) can deter some buyers, and Pakistan’s relations with the West may restrict access to components and markets. Lastly, intense competition from China and Turkey – both offering subsidised arms deals and co-production – means Pakistan must actively promote its unique advantages (for example, partnering with local industries or offering training services bundled with deals).

Strategic Recommendations

To boost its niche defence exports, Pakistan should expand export facilitation through DEPO and establish a new office in Dubai, offering financial incentives and credits. Investing in R&D and obtaining international certifications will enhance the credibility of indigenous systems like the AM-350S radar. Joint ventures, such as with Turkey, can reduce costs, improve technology, and help bypass export restrictions. Strengthening after-sales support, including training and maintenance services, will enhance buyer confidence and foster long-term relationships. Lastly, Pakistan must market aggressively at global defence expos, emphasising the combat-proven nature of its equipment. These steps will help convert interest into firm contracts across Africa, the Middle East, and Southeast Asia.

Conclusion

To sum up, Pakistan has a niche defence export portfolio that remains underdeveloped according to the global arms trade. Pakistan’s defence exports rely on combat-proven drones, affordably priced radars, and consistent delivery of small arms. The country is well-positioned to meet this demand as emerging economies in Africa, the Middle East, and Southeast Asia seek affordable military technologies with reliable operational credibility. To maximise this potential, specific policy support, intense marketing, increased export financing, and comprehensive after-sales services will be necessary. If these measures are implemented effectively, Pakistan could shift from being a regional provider of defence capabilities to establishing a broader global presence in specific defence sectors, gaining not only economic benefits but also greater strategic influence.