Pakistan has concluded a $1.14 billion deal for the supply of a Swedish airborne radar system that will counter India's Phalcons and enhance air space security, which currently relies on ground based radars.
Swedish aerospace and defence company SAAB AB has finalised the deal to supply the Airborne Warning and Control System (AWACS), media reports said.
The system includes SAAB 2000 turboprop aircraft equipped with airborne radars from Ericsson Microwave Systems. The air surveillance system can be used for both military and civilian purposes, such as helping coordinated relief flights after natural disasters.
The SAAB-Ericsson AWACS deal with Pakistan was first announced last October.
"This is a very important order for SAAB and it confirms our strong position in the world regarding airborne surveillance systems," SAAB Chief Executive Ake Svensson said in a statement on Thursday.
The system will be able to play a significant part in the search and rescue operations and in logistic support, the company said.
The deal is a reflection on how Pakistan has been able to offset the heavy losses caused by last year's earthquake, which had forced it to temporarily postpone the long-awaited purchase of around US-built F-16 fighters, The News newspaper said.
Pakistan, however, agreed in April to purchase a scaled-down package of F-16s.
The airborne surveillance system together with existing ground-based radars is expected to provide more detailed pictures, enabling PAF to detect multifarious threats.
According to the Daily Times, SAAB said the Pakistan order would be included in its second-quarter earnings results.
SAAB had signed a contract to supply the airborne surveillance system to Pakistan in 2005.