Indian Air Force, News & Views - 2016

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Can you post the entire article or the URL please?

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The economy of Pakistan is on the rise as CPEC opens doors to foreign investors.

In what has become a major victory for the Pakistani economy, U.S.-based Morgan Stanley Capital International (MSCI) reclassified Pakistan as an emerging market after categorizing it among frontier markets for the past nine years.

As the benchmark KSE-100 index skyrocketed 400 points to reach 52,700 level at the open earlier this week, a new all-time high, the MSCI upgraded the Pakistan Stock Exchange (PSX) to Emerging Market status. That paved the way for foreign investors that track the index and have between $1.4 trillion and $1.7 trillion available.

Pakistan Economy CPECPhoto by Uzairmaqbool (Pixabay)

 

The big news for the Pakistani economy comes as the country is set to soak up the economic benefits of the China-Pakistan Economic Corridor (CPEC), which has for months been one of the most talked about topics among foreign investors.

Pakistan to generate $200 million to $500 million in investment inflows

MSCI, a leading international index provider, upgraded Pakistan to Emerging Market status from Frontier Market status where it has been since the global financial crisis in 2008. The major changes announced in MSCI’s indexes come as part of its May 2017 Semi Annual Index Review.

The reclassification of Pakistan will most likely bring foreign investors to the South Asian country, which is already facing an influx of foreign investments thanks to the CPEC projects. Most foreign institutional investors place a high value on MSCI indexes, as the index provider creates balanced portfolios that can generate maximum returns while listing all possible risks.

MSCI’s decision to reclassify Pakistan as an Emerging Market brightens the future for the country’s economy, as it is expected to generate inflows of investments in the range of $200 million to $500 million, according to the Tribune, which cites JS Global Research.

Pakistan: top performing market in Asia, flaunts strong economic performance

Credit Suisse Group, a leading global financial services company headquartered in Zurich, Germany, estimates a pro-forma weight of ~16 bp for Pakistani constituents in the Emerging Market Index, according to the firm’s research paper entitled “Pakistan Market Strategy.” According to Credit Suisse’s estimations, the upgrade to Emerging Market status is expected to drive about $270 million of passive flows in the standard and small cap index.

MSCI’s decision to reclassify Pakistan as an Emerging Market spurred the KSE-100, raising it 8.6% in 2017 alone. The increase would be much greater, but political uncertainty over the Panama case prevented the KSE-100 from soaring even higher. Since late April, the KSE-100 has skyrocketed by over 10%, with leading brokerage houses and economic analysts projecting the upward trend to continue.

In 2016, Pakistan became the top-performing market in Asia, with a whopping 46% return, and also maintained its dominance in the MSCI FM Index. Many analysts insist that Pakistan’s economic success stems from strong cash liquidity due to soft interest rates and growing investor confidence, which in part is motivated by the country’s ambitious projects under CPEC. The rebound in oil prices and the improving security situation in the country have also played a big role in its strong economic performance.

Pakistan had been one of the MSCI Emerging Markets for 14 years, from 1994 to 2008, before the temporary closure of the Karachi Stock Exchange in the wake of the global financial crisis prompted MSCI to remove it from the EM Index. Pakistan was then classified as a “standalone country index” for nearly a year before MSCI reclassified it as a Frontier Market in May 2009.

Pakistan’s economic growth driven by CPEC in number

MSCI’s decision also adds six large-cap stocks to the MSCI Pakistan Index starting June 1. The six stocks are: Oil and Gas Development Company; Habib Bank Limited; United Bank Limited; Lucky Cement; MCB Bank; Engro Corporation.

That’s good news for Pakistan and its economic performance, as each of the six large-cap stocks are well positioned for growth. Credit Suisse estimated during its Asian Investment Conference in March that Lucky Cement would experience growth due to the domestic demand momentum that is being spurred by rising private construction and infrastructure spending under CPEC.

The strong positioning in Engro’s agriculture, foods & beverages, and energy businesses, opens the door for further growth, as the corporation serves as prime beneficiary of CPEC via its Thar coal power projects. Habib Bank Limited – Pakistan’s banking giant – is, meanwhile, estimated by Credit Suisse to have the fastest growth in current accounts and fee income over the past five years, the two factors that have been leveraged to growth opportunities under CPEC.

Pros and cons of investing in Pakistan

The Pakistani economy also greatly benefits from the Chinese investment pouring into it, with the Pakistani stock market positively reacting to foreign investments from its CPEC partner. Interestingly, not all of the Chinese investment in Pakistan is part of CPEC, which suggests that China is interested in boosting the Pakistani economy for decades to come rather than simply using it as means to serve the large appetites of its One Belt, One Road initiative, which has CPEC as one of its sub branches.

CPEC, which now brings in $54 billion of China’s investments, is arguably the healthiest solution for economic growth in Pakistan’s history. Under the ambitious CPEC projects, Pakistan not only gets to once and for all put an end to one of the biggest obstacles for economic growth – energy shortages – but also receive enormous foreign investments from around the world.

Pakistan is also becoming an attractive investment opportunity for foreign investors due to positive estimations from the Asian Development Bank, which expects the Pakistani economy growth rates to rise to 5.2% in 2017 and 5.5% in 2018. However, there are still several risks for foreign investors to bear in mind. They are: the declining trend in Pakistan’s exports, shrinking manufacturing (13% of GDP), decreased remittances and the balance of payments under pressure.

 
 
Edited by mominkhan

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Posted · Report post

Getting back to IAF. After 3 days they have found wreckage of their SU-30 but no pilots. Seems like they do not carry location beacons. If it takes their army and air force 3 days plus to find their own men it seems this reveals a lot about their capabilities

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Yasser,

In all fairness, it depends on where the aircraft was lost.  If its a very mountainous area, then one can well imagine the pilots ejecting falling miles away amidst the challenging terrain.

Aliusman, yasser and ndad like this

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Posted · Report post

Over a week and not found the pilots? Very strange.

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Certainly, if they themselves have not found civilisation in a week and IAF cannot find them it's very strange. Usually you find bodies in crash or parachutes.

One can only speculate that the wildlife in that part of the world may have finished them off......

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Posted · Report post

I read both pilots were found in the wreckage of the MKI.  Neither was able to eject.  Fighter flying is a risky business.

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Chose the wrong day to threaten Pak with a cricket analogy....

 

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  3. Air Force Chief B S Dhanoa highlights shortage of fighter jets, says IAF is ready to take on Pakistan, Maoists
 

Air Force Chief B S Dhanoa highlights shortage of fighter jets, says IAF is ready to take on Pakistan, Maoists

 

 

 

facing due to shortage of fighter jets in its arsenal, according to Indian Express report. Dhanoa has likened this to that of a cricket team playing with seven players. It is akin to a cricket team playing with seven players instead of 11, 

 

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Lockheed Martin, Tata Announce F-16 India Partnership
Landmark agreement supports F-16 Block 70 'Make in India' offer

PARIS, June 19, 2017 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) and Tata Advanced Systems Limited (TASL) signed a landmark agreement affirming the companies intent to join hands to produce the F-16 Block 70 in India. The F-16 Block 70 is ideally suited to meet the Indian Air Force's single-engine fighter needs and this unmatched U.S.-Indian industry partnership directly supports India's initiative to develop private aerospace and defense manufacturing capacity in India.

Sukaran Singh, CEO of Tata Advanced Systems Limited, (seated left) and George Standridge, vice president of Strategy and Business Development, Lockheed Martin Aeronautics, sign a letter of intent to produce the F-16 Block 70 in India. Standing are Mr. Ratean Tata, Chairman Emeritus, Tata Sons, and Orlando Carvalho, executive vice president of Lockheed Martin Aeronautics. (Lockheed Martin photo)

This unprecedented F-16 production partnership between the world's largest defense contractor and India's premier industrial house provides India the opportunity to produce, operate and export F-16 Block 70 aircraft, the newest and most advanced version of the world's most successful, combat-proven multi-role fighter.

F-16 production in India supports thousands of Lockheed Martin and F-16 supplier jobs in the U.S., creates new manufacturing jobs in India, and positions Indian industry at the center of the most extensive fighter aircraft supply ecosystem in the world.

"This agreement builds on the already established joint venture between Lockheed Martin and Tata and underscores the relationship and commitment between the two companies," said Mr. N. Chandrasekaran, chairman of Tata Sons.

"Lockheed Martin is honored to partner with Indian defense and aerospace leader Tata Advanced Systems Limited on the F-16 program," said Orlando Carvalho, executive vice president of Lockheed Martin Aeronautics. "Our partnership significantly strengthens the F-16 'Make in India' offer, creates and maintains numerous new job opportunities in India and the U.S., and brings the world's most combat-proven multi-role fighter aircraft to India."

The Lockheed Martin-TASL F-16 partnering agreement builds on TASL's proven performance manufacturing airframe components for the C-130J airlifter and the S-92 helicopter.

With more than 4,500 produced and approximately 3,200 operational aircraft worldwide being flown today by 26 countries, the F-16 remains the world's most successful, combat-proven multi-role fighter ever produced. The F-16 Block 70 is the newest and most technologically advanced F-16 ever offered.

About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 97,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

About Tata Advanced Systems Limited
Tata Advanced Systems Limited is a wholly owned subsidiary of Tata Sons, focused on providing integrated solutions for Aerospace, Defence and Homeland Security. In a short span of five years, Tata Advanced Systems Limited has become a significant player in the global aerospace market, becoming the premier manufacturing partner for global OEMs, including Boeing, Airbus Group, Sikorsky Aircraft Corporation, Lockheed Martin Aeronautics, Pilatus Aircraft Ltd, Cobham Mission Equipment, RUAG Aviation, as well as the Government of India's Defence Research & Development Organisation. It has capabilities throughout the entire aerospace value chain from design to full aircraft assembly, and is well positioned in other areas that include missiles, radars, unmanned aerial systems, command and control systems, optronics and homeland security.

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Assalamaoalukum

if I am reading it correctly all it means is if  Indians ever select F16 for their fighter requirement then TATA will coproduction this aircraft. So what is new here. I think we have known this for at least seven years now.

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I believe this is just the LoI, whether it happens remains to be seen.

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Posted (edited) · Report post

What I get from reading all this is that Tejas is an abject failure since their MMARC was for twin-engine not single engine

Edited by H Khan

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Assalamaoalukum

I am still confused. Are they going to make F16s in India for export???there is no export orders in pipeline for F 16s and it will take few years to move facility to India. And who will be willing to pay 100 million for something made in India??? To me this all seems paper exercise rather than anything concrete on the ground .

Gaf, queman786 and H Khan like this

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No other country will be buying F-16s by the time the Indians set up facilities.  Most countries will be looking at 5th gen options.  Lets also keep in mind that assemble/make in India does not mean the US restrictions don't apply.  At best this would be a solution for the numerous and aging Mig-21s, 27s, Su30s, Mirages in use.  All for India's own needs.  

Edited by SSAAD

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This development is brilliant and a blessing in disguise. Finally, PAF will stop ordering more new F-16s, and finally PAF will get over its obsession with a 50 year old machine. And finally PAF will stop throwing valuable funds at F-16s and start spending more funds on JF-17. Thanks God that the era of F-16s is finally over with the PAF !

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To me its not the 50 year old design of an Aircraft ( which is still one the best ever designed) which worries me, its the Radar, Sensors and the Armament it comes with.

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Guys, read the fine print. LMTAS have agreed to partner with Tata IF they win the new competition. The stipulation of the competition states the winner will have to partner with a local Indian company. LMTAS are just fufilling one of the requirements to enter the competition. Now remains to see if Indian government can find $15 Billion to do this when they are struggling to buy basic kit

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Keeping the Rafale deal in mind and its timeline, what a sight it will be to see, PAF retiring its oldest F-16 squadron and IAF inducting its first make-in-India F-16 squadron. Should happen around the same time.

yasser, Gaf and zeeshan like this

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Keeping the Rafale deal in mind and its timeline, what a sight it will be to see, PAF retiring its oldest F-16 squadron and IAF inducting its first make-in-India F-16 squadron. Should happen around the same time.

​That's not strictly true, there's plenty of life left in the Viper, given the fact that the USAF has expanded its SLEP for over 800 of its Vipers, which means the F-16 could still be flying by around 2050, and the PAF could follow a similar approach. In addition, the Turks are working on their own upgrade path using their own AESA being developed by Aselsan. The Viper and SLEP will still be relevant for existing users, but doesn't make sense for any new adopters of the platforms.  

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