ISLAMABAD – Pakistan’s State Defence enterprise Heavy Industries Taxila toconvert into corporate entity, Media Report has suggested.
During the last week of August, the Senate passed legislation to supportthe transformation of the state’s defense enterprise, Heavy IndustriesTaxila (HIT), into a corporate entity.
The legislation – the Heavy Industries Taxila Board (Amendment) Bill 2019 –will result in HIT expanding its commercial activities. It will be made alimited company and will be registered with the Securities and ExchangeCommission of Pakistan (SECP).
The Senate’s Standing Committee on Defence Production said in a report thatthe move to corporatize HIT will enable the enterprise to more easily enterjoint ventures (JVs) with national and foreign firms.
The bill was approved earlier this year by Pakistan’s National Assembly andwas referred to the Senate for consideration in May.
The move is in line with Pakistan’s efforts to spur capability developmentsin its national defense industry according to Jane’s 360.
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The Senate passed the Heavy Industries Taxila Board (Amendment) Bill 2019this Thursday. The legislation has already been adopted early this year bythe National Assembly. Senate Standing Committee on Defense ProductionChairman Senator Lt-Gen (R) Abdul Qayyum tabled a related report in theHouse on August 29.
Federal Minister for Defence Production Zubaida Jalal moved the bill foradoption.
HIT will now be able to enter into joint ventures with national andinternational partners for indigenous manufacturing of commercial productssuch as automobiles, tanks, prime movers, and railway wagons. This willresult in more revenue, investments, and technologies which would benefitHIT’s defense production activities.
