The missiles, reportedly modelled after the Chinese M-11 missiles, will give Pakistan the capability of matching India's Prithvi.
The existence of the factory was disclosed in a classified US National Intelligence Estimate on China'smissile-related assistance to Pakistan, says the Post.
The intelligence report also says that Pakistan may have developed nuclear warheads for the missile. The factory, located in a Rawalpindi suburb, is expected to be fully functional in a year or two, according to the report. The Post cites varying opinions in the US intelligence community about the factory's abilities.
Some officials believe the factory will be capable of producing complete replicas of the M-11 missiles, while others believe that it will only be capable of manufacturing some components.
Either way, US officials are certain that the factory is designed to facilitate Pakistan's production of missiles. There is not much dispute over what this is. It is a reasonable, analytical judgement, an intelligence, official told the Post.
The existence of the factory opens up the possibility of fresh US sanctions against China for violating the Missile Technology Control Regime (MTCR), a pact that restricts export of missiles or missile technology capable of carrying nuclear warheads beyond 185 miles. The M-11's range is a little over 185 miles.
The sanctions include a ban on most exports to the US for two years, a move that would put immense strain on Sino-US ties. The possibility of similar sanctions was averted earlier this year after Chinese officials told Washington they were unaware of the sale of ring magnets, used to enrich uranium, to Pakistan.
US intelligence officials told the Post they believed the missile factory was the result of a secret contract signed between Pakistan and China. The contract, in their opinion, provided for building a missile factory, plus transferring about three dozen missiles to Pakistan.
Officials from both China and Pakistan denied any knowledge of the factory to the post.
