Pakistan Ordnance Factories Struggle Against India’s Growing Arms Industry

Pakistan Ordnance Factories (POF) faces declining sales due to quality concerns and stiff competition from India's Munitions India Limited (MIL), which has made significant inroads in the Arab Gulf and Africa with superior, competitively priced products.

For many years, Pakistan Ordnance Factories (POF) was a leading supplier of small arms and ammunition, enjoying a steady annual market worth around $100 million. POF's primary customers were in the Arab Gulf and Africa, regions where it held a strong market presence. However, this dominance is now being challenged by India’s rapidly growing arms industry, particularly by Munitions India Limited (MIL).

One of the significant reasons for POF’s declining sales is the concern over the quality of its ammunition. Reports indicate that high failure rates in Pakistani ammo have driven traditional customers to seek more reliable alternatives. This has opened the door for competitors like MIL, who have capitalized on these concerns by focusing on automation and quality improvement in their production processes.

MIL’s commitment to producing superior ammunition has paid off, with countries like Saudi Arabia placing substantial orders. Recently, Saudi Arabia made headlines by placing a record-breaking $225 million order for artillery from MIL, highlighting the increasing trust in Indian products. 

The African market, another key region for POF, is also experiencing a shift. Indian companies are gaining ground by offering competitive prices and high-quality products. Moreover, India's strategy of extending Lines of Credit to African nations has made their offerings even more attractive compared to traditional suppliers like China, Russia, and Pakistan.

POF's recent participation in the World Defence Show in Riyadh underscored their struggles. Despite their presence, they were overshadowed by India’s success, signaling a rapid decline in POF’s influence. Unlike their Indian counterparts, POF has not undertaken significant modernization efforts or focused on improving quality control, further affecting their market share.

India's emergence as a major arms exporter is reshaping the global arms trade, posing a significant threat to Pakistan’s established position. With India continuing to innovate and expand its market reach, POF faces an uphill battle to regain its former standing.