The federal government plans to boost arms export to $100 million in three years by developing manufacturing facility for guns and accessories used in hunting and sports, officials say.

This will be part of the government strategy to be implemented through Pakistan Hunting and Sporting Arms Development Company (PHSADC), a public sector entity established in 2006.

“Despite lapse of two years, the company could not take on the project owing to numerous management issues, security constraints and flaws in operational strategy,” says Javed Khattak, the chief operating officer of the PHSADC.

“The previous strategy was focused only Dara Adam Khel (DAK), a tribal area famous for gun-manufacturing, off 35-km from Peshawar, where the security situation got worsened during last two years, impacting on the project execution.

There was no plan-B in case of security constraints which have virtually dumped this critical project,” opines Mr Khattak. “Now, the project work scope has been expanded to the whole country under the new strategy, to produce results.”

A major change is that the company will not go for manufacturing of high-tech weaponry and instead will rely on the available strengths.

“We don’t have latest technology, thus, we cannot compete in the international market. But, we are good in making customised hand-made guns and we will go for them,” says Mr Khattak.

The gun-manufacturing industry in DAK is centuries old, where most of the arms and ammunition manufacturers run small production units in shops and their houses. Much of the work is done manually or in workshops.

Focus will be on improving skill level and quality in the value chain for producing of hand-made customised guns, which he says “is a real strength of local manufacturers.”

Likewise, the company will establish linkages for export of hunting and sporting arms and accessories and export any available weapons, replicas, stocks of weapons and accessories.

Moreover, creating linkages with world market for constant flow of information, developing a library on hunting and sporting arms, organising study visits, developing a high value added market for hand-made replicas and guns and promoting hunting trips/tourism are some of other activities to be undertaken in coming years.

The volume of global arms trade is $25.6 billion a year and Pakistan could easily fetch $100 million if it opts for hand-made customised guns.

The company is planning to develop the indigenous skills for producing customised hand-made guns in different parts of the country particularly for engraving and carving.

“We have best quality of artists specialising in wood and leather work, so the only thing now is to utilise their skills in a productive way,” says Mr Khattak.

Dir, Gujrawanala, Wazirabad, Sialkot are the areas, where he claims international quality daggers, swords and other metal goods can be produced, while DAK, Peshawar and Quetta can manufacture guns and Hyderabad and Karachi have skills to make leather goods such as casing for the guns and rounds.

Under the new strategy, focus will be on marketing of the product in international markets starting from the low end areas such as Africa and Asia that will provide some breathing space to the managers to develop the skills before going to the western markets.

The strategic interventions have been divided into three phases. The first phase, which is in progress, efforts will be made on exporting non-firing arms, wall hangers, replicas and vintage weapons swords, daggers and leather cases.

Similarly, launching of enterprise capacity building schemes on developing export focus, facilitation in formation of clusters associations and provision of quality raw material to the industry will be the main interventions in the first phase.

In the second phase, which will commence next year, focus will be on vendor development arrangements with international manufacturing industry, export of sporting arms, allied products and vintage weapons to target markets, establishment of technology upgradation centres, introduction of regulatory reforms concerning antiquity act for local and international movement of replicas, setting up of proofing houses and safety training and handling etiquettes schools.

The third phase will target foreign investment and joint ventures for exporting to more sophisticated markets of United States, Europe and Russia; facilitate quality assurance and laboratory accreditation and strengthening of SMEs industrial clusters.

Apart from achieving $100 million export target by 2011, the PHASDC intends to register 500 entrepreneurs to be involved in the gun-manufacturing business. Currently in DAK, 55 gun-manufacturing units are operating, out of which 40 are registered with the PHASDC through their association. Similarly 26 units are operating in Peshawar that will be the focus of next three years’ projected intervention.