Pakistan is finalising a $ 1 billion defence deal with a Swedish firm for delivery of Airborne Early Warning surveillance system. According to a report in the latest issue of 'Janes Defence Weekly', Pakistan, which is struggling to provide aid to survivors in all of its quake-hit areas, moved a step closer to adopting a Saab-Ericcson AEW system after signing a provisional contract, which envisages replacing of F-27 Fokker planes from the Pakistan Air Force.
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This was announced by the Swedish company on October 18, 10 days after the killer quake struck Pakistan and Pakistan-occupied-Kashmir, the weekly said. The deal was believed to be for seven aircraft but a final step had to be taken as the company was going to seek a final nod from the US.
The contract is worth $ 1 billion with two-thirds of it going to Saab Company for providing Turboprop aircraft and the rest to Ericsson, which would be providing Erieye airborne radar. Saab Chief Executive Ake Svenson was quoted by the weekly as saying that a number of outstanding issues remained to be resolved but the Janes said that it is understood that the deal is now close to being finalised.