ISLAMABAD: The Pakistan Ordnance Factories (POF) is to undergo reforms and restructuring in order to bring efficiency and cost-effectiveness to its functions with a view to creating fiscal space for modernisation, diversity and sustenance, officials say.

Presiding over a meeting here on Wednesday, Finance Minister Ishaq Dar said his ministry would support the POF management to reorient its strategic directions towards self-sustainability and financial autonomy.

POF chairman Lt Gen Mohammad Ahsan Mahmood gave a briefing to the finance minister and said the management had prepared a three-phased plan to change the working model of POF and make it self-sustainable in the next decade.

He said the plan aimed to manage and administer the affairs of the factories on sound commercial lines.

Gen Mahmood said that the POF management wanted to bridge the technological gap by replacing old plants and machines from exports and commercial sales, instead of seeking grants from the government.

He said: “The POF is a professional, progressive, technologically advanced and internationally competitive organisation which meets demands of security forces and earns valuable foreign exchange to make it self-sustainable in the long run.”

Mr Dar said that defence economy was a huge sector and Pakistan had a great potential in the field. “We need to turn the POF around in order to make it a proficient and efficient set-up.”

The private sector’s participation could also be brought in without compromising the basic role of the organisation, he said.

The finance minister said that the surplus capacity of the factories working under the POF could also be utilised to meet the needs of the civilian population. The POF had the potential to meet the future needs of defence and security forces and become a forward-looking and self-sustainable organisation within 10 years, provided it changed its business model on commercial lines, he added.

Mr Dar directed the POF management to present a financial model of its reformation and restructuring plan for consideration by the Cabinet Committee on Restructuring.

Defence Production Secretary retired Lt Gen Tanvir Tahir, Finance Secretary Waqar Masood, Adviser to Finance Ministry Rana Asad Amin, Special Assistant to Finance Minister Shahid Mahmood and senior officials of the finance ministry attended the meeting.

Published in Dawn, July 10th, 2014