"We have substituted imported defence equipment worth USD 1.5 bn (per year), which for us is a huge bonus," Jane's Defence Weekly quoted an unnamed Pakistani official as saying.
Of the USD 1.5 billion defence hardware produced locally, Pakistan Aeronautical Complex at Kamra, which manufactures JF-17 Thunder fighter jet, Mushak and Super Mushak aircraft, produced equipment worth a billion dollar last year.
Supplies worth another USD 500 million came from other production facilities catering for the Army and the Navy. These included the Heavy Industries Taxila (HIT) and the Pakistan Ordnance Factories (POF).
Another major contributor has been the Karachi Shipyard and Engineering Works.
Also Read
"We have achieved self-sufficiency in several areas of defence production. We cannot lower our guard against the threat from our adversaries," Minister for Defence Production Rana Tanvir Hussain was quoted as saying by the Jane's.
The country's defence industry has often been criticised for being inefficient and low tech because of which the cost of its products has been higher than that of comparable items in the international market.
Under the first right of refusal, local buyers have to accord preference to local industry for their procurements.
Despite the progress made by the local defence industry in meeting the needs of the armed forces, the defence industry has not been able to find buyers for its products in the international market, the report said.