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Pakistan is pursuing defense export orders worth $13 billion, which could significantly impact its external account and industrial landscape. The estimated pipeline includes fighter aircraft, trainer jets, armored vehicles, drones, naval platforms, and ammunition.

This would represent over 80% of Pakistan's foreign exchange reserves and about 3.7% of GDP. Historically, Pakistan's defense exports have been modest, with only $22.38 million reported in 2024. The defense sector is expected to expand due to geopolitical demand and successful indigenous platform deployment, with state-owned entities like PAC, HIT, and POF leading production.

Analysts anticipate gradual private sector involvement as subcontractors. A stronger defense manufacturing ecosystem could also benefit civilian technology sectors and enhance export diversification.