In 1965, The Islamic Republic of Pakistan felt a necessity of acheiving self-reliance in production of essential defence hardware items. This led to the establishment of Directorate General Munitions Production and Procurement (DGMP&P) in 1967. In 1970 it was bifurcated into Directorate General Defence Purchase (DGDP) & Directorate General Munitions Production (DGMP). The former catering to defence procurement and the later for indigenous production of defence equipment.
The economy of a country largely depends upon industrialization hence importance of self-reliance through indigenization cannot be over emphasized. Stress in this area has been significant, however results have been varying as the phenomena of indigenization is a function of numerable factors and considerations outside the control of developing countries like ours. Embargos and sanctions imposed on Pakistan by US and other western countries from time to time forced Pakistan Govt to take steps towards achievement of self-reliance in production of defence equipment so as to minimize to whatever extent possible such adverse possibilities. Creation of DGMP was one of such step toward indigenization. Due to changing global environments particularly after 9/11, it was felt that now is an opportunity to double our efforts to further build up our technical base by acquiring manufacturing capabilities as well as transferring of sensitive technologies.With this idea DGMP is striving hard to promote indigenization through local industry.