Pakistan’s Defense Spending And Defense Production Have Been Under Extreme Criticism From Different Sections Of The Society. Sometimes The Criticism Is Not Based On Valid Arguments And Verifiable Evidence. Defense Sector And Defense Industry On The Other Hand Is A Very Important Part Of The National Security Policy And The Economy. Therefore There Is A Need To Study The Critique On The Defense Industry Of Pakistan In Order To Inform A Better Policy, By Finding Answers Attached To The Myths Related To The Defense Production Of Pakistan And What The Realities Are. The Major Defense Production Comprises Of Heavy Industries Taxila, Pakistan Ordinance Factories And Pakistan Aeronautical Complex, However, The Entire Defense Production Sector Is Out Of The Scope Of This Study. In This Study The Case Of Pakistan Aeronautical Complex (Pac) Has Been Analyzed. The Previous Studies Have Relied Heavily On Econometric Techniques And Have Taken Defense Expenditure As A Whole. The Various Spillover Effects And The Positive Externalities Generated By The Defense Sector Have Been Overlooked By The Existing Literature. The Study Has Analyzed Pac Kamra In Detail And In-depth. Findings Suggest That Pac Kamra Is Contributing To Human Resource Development, R&d, And Is Providing Sound Foundations For Aeronautical And Aviation Industry Of Pakistan. The Study Also Found That Pac Has A Potential To Give Pakistan Export Quality Products Which Can Bring In The Much Needed Foreign Exchange. And On The Basis Of These Findings The Study Concluded That The Criticism Levelled Against Pac Kamra Is Not Valid And This Entity Of National Strategic Importance Should Therefore Be Safeguarded From Ill-informed And Unwarranted Critique. The Study Is Both Descriptive And Exploratory, The Study Used Different Techniques Of Purposive Sampling Where The High Ranking Officials Of Pac Served As The Key Informants. The Finding Are Based On The Open Ended Semi Structured Interviews. The Study Analyzed The Answers Of The Respondents With Openly Available Information And Has Then Given Conclusions After A Thorough Analysis. This Study Found That Pac Has Numerous Activities And Is Full Fledge Industry. All The Major Activities Of Pac Are Reported. A Historical Account Of The Pac Is Given, Discussing How It Has Progressed. Key Informants Emphasized That The Pakistan’s Defense Expenditure Is Determined By The Threat Perception And Hostility At The Borders Along With Internal Security Situation. The Study Also Found That Pac Kamra Is Saving Millions Of Foreign Exchange By Providing Valuable Viii Activities And Indigenous Production Of Aviation Products. Lastly, Study Found That Pac Has Immense Export Potential.on The Basis Of These Contributions Of Kamra, The Study Finds That Criticism Directed At Pac Is Not Justified. Supervisor:- Dr. Iftikhar Ahmad