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SASSI PRESS CONFERENCE ON EXPORT CONTROLS, NUCLEAR SUPPLIERS GROUP (NSG) AND IMPACT ON HIGH TECH TRADE

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ISLAMABAD:(APS)DECEMBER 10,2016-Highlighting the policy of nuclear apartheid by the outgoing US administration Dr Maria Sultan stated that the possibility of placing Pakistani entities on scrutiny requires a fresh outlook. She was speaking at the National Press Club on “Export Control Nuclear Supplier Group (NSG): Decline to High Tech Trade” on December 10th, 2016. Dr. Sultan, D.G SASSI highlighted that the Project Alpha report can make Pakistan’s Nuclear Supplier Group membership case more complicated. This report may also muddle Pakistan’s interaction with the upcoming U.S. administration. She said that an academic report should not be a criterion for putting companies of the U.S. entity list. The possible inclusion of Pakistani companies in the U.S. entity list, mentioned in the Project Alpha report, will affect Pakistan’s defence, nuclear and commercial industry. The Project Alpha report is targeting Pakistan’s jugular vein by attacking companies that are its industrial base. Furthermore, the outgoing U.S. administration is also playing its role in making the future of Pakistan-U.S. relations more complicated. The key assertions made in the presentation were that Pakistan aims to build a cooperative trade connection with the US, Pakistan fulfills the NSG criteria and by broadening the base on entities listed in the sanctions list will hamper the possibility of trade and development in Pakistan. Project Alpha makes an argument that Pakistan should not be given access to the NSG because it is still involved in a discreet acquisition program for nuclear and missile technologies. However the presentation made at SASSI contested the claim that the case made by Project Alpha lacked substance and balance in approach, as it is was designed to substantiate India -US defense industry collaboration and case for NSG member ship to India, rather than an objective assessment. Through project Alpha all the Pakistan’s defence, nuclear and hightech industry is being targeted. According to Project Alpha, Pakistan’s whole nuclear program is claimed to be not indigenous, Pakistan is accused to be still involved in black market, and Pakistan’s demand for NSG membership is stated as not sound. Highlighting the U.S path finder, Dr. Sultan said that it contains 4 parts: UAVs production in India, Naval propulsion systems enhancing Indian hegemony in Indian Ocean Region (IOR), Defence agreement F-16 between U.S and India, Jet propulsion system, so this will finally lead to unbreakable defence agreement between U.S and India. Dr. Sultan said that the perceptions which have been created through open source, against the Pakistan’s defence and nuclear, high-tech industry is unacceptable. The base of Sanctions being magnified which is based on political reasons and Indo-U.S agreements. She stated that the high-tech trade is being diverted towards Asia and which will let 17.7% of world trade to pass through Pakistan benefitting China Pakistan Economic Corridor ( CPEC) which is now Pakistan’s manufacturing base and as 90% of oil traffic will also pass through this region. So, She said that to stop it, Indian export control system is used which is targeting Pakistan’s all kind of trade. Talking about Indo-US joint agreement, she stated that this will lead India and US to decide collectively in targeting countries under terrorist label. Moreover, 99% U.S defence facility will be given to India while Pakistan is been restricted to 99.8% of U.S defence facilities. Organizations being targeted under this perception game by U.S include: power plant, Air weapons Complex- Base of KAMRA JF-17, POF, which is directly related to counter terrorism operations being run in Pakistan as it provides ammunitions. Moreover, CPEC would be affected as U.S export control system is being moved to Department of Commerce to look over Pakistan’s defence, nuclear and High-tech trade. If Pakistan’s entities are being accused and sanctioned without any investigation, then it will increase the trade cost for Pakistan. India and US are trying to shift the Defense collaboration in new Dehli favor before the incoming administration in the US takes charge . multiple defense contracts are in the making and outgoing US defense secretary hopes to ink them before he leaves office. Citing one example she stated the US defence giant Lockheed Martin’s offer to shift its entire F-16 production line to India will give it a strategic edge over Pakistan. The proposal will give India partial control, along with the US, over which countries the fighter jets and spare parts are sold to. If the deal comes through, it will enable India to deny key supplies to Pakistan, which has relied on F-16s for aerial defence purposes over decades. While talking about removal of Indian Entities Dr. Sultan said that it is interesting that on consistent perusal of Indian Government, US Commerce Department’s Bureau of Industry had removed nine Indian entities from its entity list in 2011 thus easing certain export and reexport restrictions applicable to India. Removed entities were involved in the Indian missile and space program. Moreover, India was promoted to the Department of Commerce’s MTCR Countries Group (A:2) , though India joined MTCR later in 2016. Similarly , she argued that if the base line for the entity sanctions perceptions will be based on EAR99 or lowering the bar into dual use area will be a difficult run . And if in this case project Alpha is taken as a resource than the argument is all the more dangerous because the project does not differentiate between different organs and high-tech industry such as demonizing the nuclear secretariat to simple defense factories such as the Pakistan ordinance factories. Each has task but totally in a different realm and will require a more nuanced approach by the incoming US administration if relations are to develop between Pakistan and US. The Pakistan Ordinance Factories (POF) is a major firearm, defense contractor, and Military Corporation headquartered in WahCantt, Punjab, Pakistan. It is “the largest defence industrial complex under the Ministry of Defence Production, producing conventional arms & ammo to international standards. Pakistan Ordnance Factories also manufacture commercial explosives, hunting ammunition and possess extensive facilities for the manufacture of brass, copper and aluminum ingots, extrusions and sections for non-military applications.POF products are in service with over 40 countries, in Europe, Africa, Asia, the Middle East and the Americas. Ammunition and rifles have been exported to countries such as Iraq, Croatia and Afghanistan for their respective military establishments. POF specializes in the manufacturing of commercial explosives, hunting ammunition and possesses extensive facilities for the manufacture of brass, copper and aluminum ingots. A state of the art garments factory, manufactures military uniforms and can also cater for the needs of the civil sector. As of post 2010s, Pakistan has been aiming to push ahead with its export market but facing difficulties due to international guidelines enforced by the United Nations. Stating the Areas of Concern for Pakistan she said that such as targeting Pakistan Ordinance Factory POF which is the base line for providing ammunition and is traditionally a part of Pakistan’s defence is being targeted which will definitely affect Pakistan’s counterterrorism efforts. Moreover, POF’s 99% work is related to making weapons and 40% of Pakistan’s trade is related to industries and factories under POF. So, this will affect Counter-terrorism efforts of Pakistan, Karachi Operation, Consolidation phase, ripple effect of Afghanistan’s unstable situation. While talking about Indian Entry into NSG, she said that US – India will have a common industry, this defense collaboration could exclude an effective SCO without India as key runner and we could be seeing a regional block sans India . The current bend of the outgoing US administration she argued will create an Economic triad of US Technology and R&D with the Indian Human Resource that will be counterproductive to the long term and strategic interests of US if they are single country driven. She said that Pakistan’s concern is that granting India a countryspecific waiver by NSG in 2008 neither served the cause of nonproliferation, nor the South Asia’s strategic stability. Region’s strategic stability is a critical factor for achieving the object of nonproliferation. So, NSG’s 48 participating governments should adopt a nondiscriminatory approach on the question of NSG membership for non-NPT states rather than the creation of another country-specific exemption. Dr. Sultan said that Pakistan wants simultaneous entry into the Group with other non-NPT States that aspire to participate in the Group. This would require a fair and simultaneous consideration of the two membership applications submitted by the non-NPT states. Such a fair and unbiased approach would go a long way in making NSG a more effective platform to prevent nuclear proliferation. Pakistan has been engaged with NSG for almost a decade is now ready to formally engage with the Group for presenting our detailed credentials (its export control and management regime, its nuclear supplier capabilities and the history of its engagement with NSG) for participating in NSG. She concluded that India and U.S are trying to cover up Pakistan’s defence as a whole through non-traditional means which will only lead to instability in the whole region.

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