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Pakistan Defence and Security Report Q4 2009

Published by: Business Monitor International

Published: Oct. 22, 2009 - 61 Pages


Table of Contents


Executive Summary
SWOT Analysis
Pakistan Security SWOT
Pakistan Defence Industry SWOT
Pakistan Political SWOT
Pakistan Economic SWOT
Pakistan Business Environment SWOT
Political Overview
Security Risk Analysis
BMI’s Security Ratings
Table: Asia Pacific Regional Security Ratings
Table: Asia Pacific State Vulnerability To Terrorism Index
City Terrorism Rating
Table: BMI’s Asia City Terrorism Index
North and South Asia Security Overview
Security Overview
Internal Security Situation
Tribal Co-operation
External Security Situation
Border Disputes
Afghanistan
Kashmir
Armed Forces and Government Spending
Table: Regional Armed Forces, 2007 (including conscripted, ‘000)
Armed Forces
Deployments and Exercises
Table: Pakistan’s Deployments
Weapons of Mass Destruction
Table: Pakistan's Nuclear-Capable Ballistic Missile Arsenal
Nuclear Developments
Table: Exports From Pakistan
Market Overview
Arms Trade Overview
Industry Trends and Developments
Procurement Trends and Developments
Industry Forecast Scenario
Table: Pakistan’s Armed Forces, 2005-2013 (‘000)
Table: Pakistan’s Government Defence Expenditure, 2005-2013
Key Risks to BMI’s Forecast Scenario
Macroeconomic Forecast
Table: Pakistan - Economic Activity, 2006 - 2013
Company Profiles
Pakistan Ordnance Factories
Heavy Industries Taxila
Pakistan Aeronautical Complex
Dr A Q Khan Laboratories
Air Weapons Complex
Country Snapshot: Pakistan Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Table: Employment Indicators, 2001-2006
Section 3: Labour Market And Spending Power
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Manufacturing Wages, 2000-2012
BMI Methodology
How We Generate Our Industry Forecasts
Defence Industry
City Terrorism Rating
Table: Methodology
Sources

Abstract

It remains to be seen to what degree the Pakistani Taliban can maintain unity following the death of theirleader, Baitullah Mehsud, and whether or not their focus will shift towards Afghanistan as some observershave suggested. To be sure, the new head, Hakimullah Mehsud, will be keen to prove his jihadistcredentialsand gain the respect of various militant groups and this could mean a surge in attacks acrossPakistan over the coming months.

The death of the leader of the Pakistani Taliban - Tehrik-e-Taliban Pakistan (TTP) - Baitullah Mehsud inan air raid by a remote-controlled aircraft in South Waziristan on August 5 2009 marked a symbolicvictory in the drawn-out fight against militants roaming the border region between Pakistan andAfghanistan. Mehsud had masterminded a wave of attacks across Pakistan in recent years, and was acentral suspect in the assassination of former Prime Minister Benazir Bhutto in December 2007. Thecapture of the Taliban's chief spokesperson, Maulvi Omar, a fortnight later was another key step inneutering the movement. Omar had been key in liaising between different TTP members and a centralfigure behind the movement's propaganda machinery.

The power vacuum left by Mehsud's death has clearly shaken the Taliban, while also raising fears ofretaliatory attacks across the country. Indeed, although the perpetrators were unidentified as we went topress, Pakistan's minister for religious affairs, Hamid Saeed Kazmi, was injured in a gun attack inIslamabad on September 2. Kazmi, a cleric of the moderate Barelvi sect, has been an outspoken critic ofthe Taliban, making him a prime target for any reprisals.

Following a few weeks of smoke-and-mirrors diversion tactics the Taliban in late August finally admittedMehsud's death, with one of his senior aides, Hakimullah Mehsud, in the interim having been chosen totake up his mantle. In the immediate aftermath of Mehsud's assassination, Hakimullah was rumoured tohave been killed in a shoot-out with another top contender for the job, Wali-ur-Rehman. The AfghanTaliban reportedly helped to resolve the discord between the two in a deal that will see Rehman takecontrol of fighters in South Waziristan. However, while some division of labour has been established,internal tensions could persist. Indeed, it remains to be seen whether or not Hakimullah, like hispredecessor, will be able to maintain unity among the 13 groups that have joined forces under the TTPumbrella.

Local security experts have stressed the risk that the new commander, who is well-known for his rashtemperament and brutal ways, could try to launch a battery of attacks to try to assert his control over TTPand prove his worthiness as Baitullah's heir. At the time of writing the gauntlet already appears to havebeen thrown down with a bloody suicide bomber killing 22 border guards in the Khyber Agency onAugust 27. This was followed by another suicide blast in the Swat valley on August 30, in which 14police recruits were killed. Needless to say, security risks are likely to remain elevated over the comingmonths, a state of affairs reflected in Pakistan's low short-term score (49.6) in our political risk ratings.

Significantly, there has been a great deal of speculation over the strategic focus of the Taliban under thenew leadership, and in particular whether they are likely to channel more energy towards the insurgencyin Afghanistan than has hitherto been the case. So far there have been no firm indications of such a shift,but this could partly be explained by the transitional phase that the TTP is in. Again, much hinges onHakimullah's ability to prevent the movement from splintering into different groups with separateagendas. A related question is whether or not the Pakistani military is likely to go ahead with its plannedmilitary offensive in the Waziristan region, or whether it will deem it less of an urgency now that theTaliban are at least partially on the back foot. In mid-August a Pakistani general was quoted in the mediasaying that 'it is going to take months', when referring to the preparatory time needed before the offensivecould start. To be sure, fighting in the treacherous Waziristan mountains - which are ideal for theTaliban's guerrilla-style warfare - is a tall order even for the most experienced of soldiers.

The military top brass has displayed some reluctance to open up a second front, while the campaign in theMalakand region is still ongoing. By the looks of it, this full-on offensive, which commenced in April, isentering a more stable phase with large parts of the Swat valley having been cleared of insurgents andinternally displaced people slowly returning home. Indeed, on September 1 an army spokesman said thatmore than 100 Taliban militants, including 18 wanted ‘terrorists’, had surrendered to security forces in theSwat valley. On the same day there were reports that the army had killed 40 militants in a raid in theKhyber region. This display of action has no doubt comforted Pakistan's Western allies, and Washingtonin particular, who before the present military crackdown had expressed serious doubt about Pakistan'scommitment to combating the militants. However, as amply demonstrated by history, a decisive victoryover the Taliban and their allies will unlikely be attained by force alone. Efforts to raise living standardsin the tribal areas, enfranchise locals and lift the aspirations of disillusioned young men remain pivotal toweaken the Taliban's ability to replenish itself.

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