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What is your view of Pakistan increasing its defence budget?

Punjab's education budget breakdown.

EajhkV-WkAAqlin
 
im not messing around - yesterday at night spent few hrs reading into what us / india/russia/china/america had.

Thats the reason why i posted the 4th generation fighters. hence the reason i even named the swedish JAS 39 Gripen- one of the best 4th gen fighter and i dont believe any country bought it off Sweden

i cant change the fact that the defense have this budget - so they will have to spend it - hopefully on decent stuff.

I will say that if it was up to me - ill spend it on what i stated above in my first post.

But honestly if your into pakistan defense, with the money allocated- what would you like them to get / invest??? - no bait

we dont need new Jets, JF-17 is doing the good job for PAF, what PAF needs is atleast 32 New/MLUED F-16s .....

for now Army only need a batch of Attack helicopter, they are looking for last 10 years or so , finally they found one, which is Turkish T-129 .... but still it takes time to deliver due to engine issue from US .....

we need to beef up the Navy becoz of CPEC, Navy is catching up to Army and Paf very fast, in coming years we will see some new submarines with Chinese and Turks Frigates and Corvettes with stealth and VLS tech also with some ATR planes having German tech with anti-sub capabilities becoz Pakistan gt the extension of the EEZ ....
Also we are extending the range of our Naval Missiles .....
 
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Also Pakistan is slowly and steadily moving towards its own 5th Generation fighter called Project Azm. It was started in 2017 but do not expect anything major before 2028-2030.

yeh i was reading about that - that would be awesome - indians are also developing thrs - see who gets it done first - as indian tejas was delayed a few times
 
we dont need new Jets, JF-17 is doing the good job for PAF, what PAF needs is atleast 32 New/MLUED F-16s .....

for now Army only need a batch of Attack helicopter, they are looking for last 10 years or so , finally they found one, which is Turkish T-129 .... but still it takes time to deliver due to engine issue from US .....

we need to beef up the Navy becoz of CPEC, Navy is catching up to Army and Paf very fast, in coming years we will see some new submarines with Chinese and Turks Frigates and Corvettes with stealth and VLS tech also with some ATR planes having German tech with anti-sub capabilities becoz Pakistan gt the extension of the EEZ ....
Also we are extending the range of our Naval Missiles .....

the JF17 is far away from the su30, if what happened last yr occurs - we have no chance.

We dont have to get many jets - but i do believe we should get some su34/35- just to stay ahead
 
the JF17 is far away from the su30, if what happened last yr occurs - we have no chance.

We dont have to get many jets - but i do believe we should get some su34/35- just to stay ahead

this the era of BVR fight .....
F-16 is thre to counter Su-30, PAFs AMRAAM range is greater thn any AAM india has .....
Also dont forgt the JF-17 PL-15 BVR missile range is even better thn AMRAAM and Meteor of Rafales ....
 
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My brother is big into fighter jet simulator scene with the whole setup and thing so I have no idea about fighter plane and thing but I take his opinions in these things in high regards

So he played simulators with both of them J 17 and F 16 and according to him F16 is still better than J17 18 to 20 difference

But economically J17 seems like a good idea
 
My brother is big into fighter jet simulator scene with the whole setup and thing so I have no idea about fighter plane and thing but I take his opinions in these things in high regards

So he played simulators with both of them J 17 and F 16 and according to him F16 is still better than J17 18 to 20 difference

But economically J17 seems like a good idea

no one is comparing f-16 to jf-17, one is a medium category fighter jet and other is light fighter jet ,
also simulator doesnt give you actual experience of cockpit , its a different ball game , one is game other is real ....

here we are talking about the range of the AAM of Pakistan and India ..... Pakistan got better ones like AMRAAM and PL-15 .....

in this era air combat is all about BVR missiles, one who detect and shot first, have more chance to survive .....
 
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this the era of BVR fight .....
F-16 is thre to counter Su-30, PAFs AMRAAM range is greater thn any AAM india has .....
Also dont forgt the JF-17 PL-15 BVR missile range is even better thn AMRAAM and Meteor of Rafales ....

yeh lonewarrior, i know all of that, lol i clearly dont know anything, but know im hooked on buying the f22/ su34/su35-just around 30 of them, or even 10 f22-considering how expensive it is-however we may buy the f22 on the cheaper side as the Americans are not developing it any further and have fully officially announced that they are not making this anymore - replaced it with the f35
 
yeh lonewarrior, i know all of that, lol i clearly dont know anything, but know im hooked on buying the f22/ su34/su35-just around 30 of them, or even 10 f22-considering how expensive it is-however we may buy the f22 on the cheaper side as the Americans are not developing it any further and have fully officially announced that they are not making this anymore - replaced it with the f35

i dont know that you know all that stuff or not, but you certainly dont know that F-22 isnt for sale to anyone, not even for Israel, US has banned F-22 for export ..... :)
 
have they, thats because its too good.

just curious how do you rate the - Chengdu J-20

and the su57- as india pulled out of the program and purchasing it, Turkey got kicked out by usa from the f35 and then joined russia su57- heard not many many-been a constant struggle to design/build / finance this since cold war days
 
this the era of BVR fight .....
F-16 is thre to counter Su-30, PAFs AMRAAM range is greater thn any AAM india has .....
Also dont forgt the JF-17 PL-15 BVR missile range is even better thn AMRAAM and Meteor of Rafales ....

Will the Rafales give Ind an edge, or do we have enough to deter Modis fascist dreams.
 
also lonewarrior,

do you have any info on how far the f16 black 3 / JF17 radar can go &

do you have any info on how good india project is for thr 5th generation fighter along with south korea joint operation with indeonasia?

and last where do you believe the above nation 5th generation jets will match the f35 /su35/Chengdu J-20
 
have they, thats because its too good.

just curious how do you rate the - Chengdu J-20

and the su57- as india pulled out of the program and purchasing it, Turkey got kicked out by usa from the f35 and then joined russia su57- heard not many many-been a constant struggle to design/build / finance this since cold war days

J-20 is a 5th gen fighter just like F-22 , it has difference of 19 to 20 , having a mature platform F-22 have a upper hand ..... the true capability of J-20 in unknown becoz Chinese are very secretive on the specification of J-20 ....

Su-57 needs atleast a decade to get mature , if Turkey is serious for Su-57 thn they might share some insight they gt from F-35 project .... it will be win-win for both .....
 
Will someone bother to compare the cars of the military chiefs of Pakistan and India?
 
Will the Rafales give Ind an edge, or do we have enough to deter Modis fascist dreams.

Rafale is good fighter jet, India certainly gt edge with having 36 Rafales, it can carry heavy fire power in the sky .... but if PAF detect Rafales first thn it will be 50/50 for IAF .....

Dont forgt that Rafales meteor bvr have not great range thn F-16 AMRAAM or JF-17 PL-15 bvr ......
and PL-15 bvr is a primary weapon of J-20 fight jet ....
 
also lonewarrior,

do you have any info on how far the f16 black 3 / JF17 radar can go &

do you have any info on how good india project is for thr 5th generation fighter along with south korea joint operation with indeonasia?

and last where do you believe the above nation 5th generation jets will match the f35 /su35/Chengdu J-20

also lonewarrior,

do you have any info on how far the f16 black 3 / JF17 radar can go &

do you have any info on how good india project is for thr 5th generation fighter along with south korea joint operation with indeonasia?

and last where do you believe the above nation 5th generation jets will match the f35 /su35/Chengdu J-20

PAF f-16 blk 52 has PESA radar which has range about 150 km ..... the jf-17 blk 3 has AESA radar which has range about 170 km .....

India has its own 5th Gen project which is on Paper .....

south korea and indonesia can compete Su-57 becoz US and China are ahead of them .....
 
PAF f-16 blk 52 has PESA radar which has range about 150 km ..... the jf-17 blk 3 has AESA radar which has range about 170 km .....

India has its own 5th Gen project which is on Paper .....

south korea and indonesia can compete Su-57 becoz US and China are ahead of them .....

thanks, do you know anymore info on the india 5th gen fighter - any specs- thr budget.

can u list in order from f35 /other nationals 5th gen fighter- i understand not much info - but just best guess
 
Why is Pakistan spending so much money on defence amid COVID-19?

"The Pakistani government does not seem willing to shift its spending priorities despite the burgeoning COVID-19 challenges."

"Pakistan has emerged as one of the countries with the fastest rate of coronavirus infections in recent weeks, according to the World Health Organization (WHO). The country reported its first coronavirus case on February 26 and is now among the top 15 most-affected countries. More than 4,000 people have lost their lives to the disease in Pakistan since the beginning of the outbreak. Moreover, there is a significant shortage of personal protective equipment (PPE) and ventilators in the country."

" Despite all this, Islamabad allocated $7.85bn for defence and merely $151m for health in the budget for the financial year 2020-2021. This represents a 12 percent rise in Pakistan's defence spending compared with the last financial year. The single-line figure presented in the budget does not give a full picture of the amount actually being spent on defence either."

" To avoid hard questions from the International Monetary Fund (IMF), Pakistan refuses to be fully transparent about its military spending. Major acquisitions by the armed forces, spending on the public sector development programme (PSDP), expenditure on the nuclear programme and para-military forces, payments for military pensions, a newly set-up national security division and a few other military expenditures are not reflected in the budget. If these were to be added to it, Pakistan's defence spending would be even higher - at around $11bn. "

" The increase in defence spending comes at a time when Pakistan is forced to allocate 41 percent of its expenditure to debt servicing. The economy was underperforming even before the onset of COVID-19, surviving on an IMF loan package of $6bn. The gross domestic product (GDP) growth rate had plummeted from 5.5 percent in the 2017-2018 financial year to 2.4 percent in 2020-2021. Following the coronavirus outbreak, it decreased further to -1.5 percent. This marked the first time in Pakistan's history that a negative growth rate was recorded. "

" Before the pandemic, Pakistan was already burdened by an external debt of about $112bn. Today it is facing the additional challenge of feeding some 25 million poor families that can no longer make a living due to COVID-19. Moreover, the country saw a 30 percent reduction in tax revenue, due to the government's incompetence and decreased spending caused by the coronavirus lockdown. This led to a reduction in overall health spending, as the provincial governments received a less funds from the federal government."

" Nevertheless, the country's government seems to be more interested in keeping the powerful and bloated military content and impressing its strategic allies than providing support for the millions of struggling Pakistani citizens. This is why it gifted a plane full of PPE to the American military in May despite the growing domestic need for protective equipment. "

" Khan's government, in collusion with the military, is desperately trying to take control of more funds at a time when provincial governments are struggling to meet the most basic needs of their constituents. There is a consistent effort to undo the 18th amendment to the country's 1973 constitution, which gives financial autonomy to the provinces and reduces the federal government's share."

" The military believes that a reduction in the funds available to the armed forces would affect its ability to counter the multiple threats facing the country. This is why it is unwilling to limit its spending to create fiscal space for the government to meet the needs of the poor and the vulnerable during the continuing crisis. Crucially, it is also not interested in opening its budgetary plans to public scrutiny. "


" For years, continued political instability and the military's involvement in and control over politics prevented successive federal governments from questioning the spending habits of the armed forces. The military made threat assessments and decided on its modernisation needs without any input from civilian authorities. "

" It is, for instance, impossible for the parliamentarians to ask the army to make do with the domestically produced main battle tank al-Khaled, rather than buying new Chinese tanks. Despite paying more than $2bn in military pensions every year (a major expenditure that is not included in the defence budget), the government is not allowed to question what the military does with the revenues from its $20bn private business empire either."

" The military business also gets approximately $90.9m annually in tax exemptions from the state. Furthermore, the armed forces, unlike civilian departments, have the authority to move funds from one head of account to another. This means that it never has to surrender resources back to the state at the end of a financial year."

" Despite the continuing dispute with India over Kashmir, a war between the two neighbours does not seem likely. Pakistan's nuclear programme provides the necessary deterrence to prevent a ground war. This means there is no need for an increase in defence spending, especially at a time when the country is facing an unprecedented crisis and India's attention is sufficiently diverted towards its own problems with China."

" The military is still getting a large share of the nation's resources as a result of its gradual usurpation of power and decades-long dominance of the state apparatus. By claiming more and more funds in the name of "national security" the military is simply trying to grab greater political, economic and social space for itself to the detriment of millions of struggling Pakistani citizens. The army chief is already a member of the top economic decision-making body, and military officers dominate most institutions. "

" The government and other state institutions seem unable to resist the military's growing demands and put the people first. Pakistan's foreign allies, donors and partners, therefore, have a duty to pressure Islamabad to rethink its priorities."

https://www.aljazeera.com/indepth/o...g-money-defence-covid-19-200625115702999.html
 
oh bhai meray there is something called the 18th amendment. The majority of health and education is the provinces job. The federal budget is for Islamabad and for grants etc.

compared to our neighbour we spend nothing on defence. Wht do you want us to do? give up spending money on the army? then what? watch Modi walk into Lahore while you throw books at him?
 
the whole article is contradictory..in one breath she is complaining about the fact IK is trying to take money from the provinces and on the other complaining the govt doesnt spend enough on healthcare and education.
 
Better to increase the defence budget rather than the crooked existing mafia politicians increasing their pockets
 
The federal government on Friday proposed a 6.3% increase in the defence budget as the country faces multiple internal and external challenges including tense ties with India and a possible negative fallout of the US troops’ withdrawal from Afghanistan.

The budget document shows that defence outlay for 2021-22 would be Rs1.37 trillion against Rs1.28 trillion earmarked in the ongoing fiscal year.

The defence spending is 16% of the total outlay of the budget.

A closer look reveals that the sum of Rs1.37 trillion does not include the amount of Rs360 billion allocated for the pensions of retired military personnel and Rs340 billion for the Armed Forces Development Programme.

Of the Rs1.37 trillion, Rs481 billion have been allocated for employees-related expenses, Rs327 billion for operational expenditure, Rs391 billion for domestic purchase and import of arms and ammunition and Rs170 billion for civil works.

Interestingly, all three services --- the army, navy and air force-- were given an equal increase of 6.3% in the budget, although the army takes the major share given its size and role.

Islamabad’s defence spending of almost 2.8% of GDP is attributed to the continued rivalry with New Delhi because of the longstanding issue of Indian Illegally Occupied Jammu and Kashmir (IIOJK).

The size of the Indian defence budget, however, is four times higher than that of Pakistan.

Between 2014 and 2019, India's defence budget jacked up from $51 billion to $71 billion, while Pakistan’s defence spending remained static keeping in view the rising inflation and depreciation of rupee.

In its annual report, the Stockholm International Peace Research Institute (Sipri) said India had the world’s third biggest military budget -- only behind the US and China.

On average, Pakistan spends $12,500 on each soldier, India $42,000, Saudi Arabia $371,000 while the US allocates $392,000 per soldier every year.

The difference, however, between Pakistan and other countries is that the size of their economies is far bigger than that of Islamabad.

Defence spending has always been the subject of discussions with some seeking greater transparency and open debate about the military budget.

In recent years, the government has provided more details about the defence budget.

However, there has never been an open debate in parliament on the subject.

Observers believe that the increase in the defence budget is justified given the impending external and internal security challenges.

The major challenge Pakistan may have to deal with includes the negative fallout of the US troops’ withdrawal from Afghanistan.

Any unrest or civil war in Afghanistan may force Pakistan to deploy its additional military assets along the Afghan border to prevent the spillover impact of chaos in the neighbouring country.

Similarly, the tensions between Pakistan and India still persist, although the restoration of ceasefire has brought some respite.

Express Tribune
 
wow so the great khan who once in power promised to cut the defense budget and spent 20 good years blasting gov. for increasing the defense budget is now on full course in making the army more powerfull then ever, i dont think it will even come as shock if IK brings the army in the gov openly.
 
The size of the Indian defence budget, however, is four times higher than that of Pakistan.

The size of India's GDP is more than 10X Pakistan's ($2,708 billion vs. $262 billion). So Pakistan is spending 2.5X what India is spending as % of GDP.

wow so the great khan who once in power promised to cut the defense budget and spent 20 good years blasting gov. for increasing the defense budget is now on full course in making the army more powerfull then ever, i dont think it will even come as shock if IK brings the army in the gov openly.

If Pakistan was to reduce its defense expenditure to 0 tomorrow, India still wouldn't attack it. Would India attack to get back the part of Kashmir it says belong to it? No! The part of Kashmir that is has is a big enough headache, and there is no benefit to making the headache twice as large.
 
The size of India's GDP is more than 10X Pakistan's ($2,708 billion vs. $262 billion). So Pakistan is spending 2.5X what India is spending as % of GDP.



If Pakistan was to reduce its defense expenditure to 0 tomorrow, India still wouldn't attack it. Would India attack to get back the part of Kashmir it says belong to it? No! The part of Kashmir that is has is a big enough headache, and there is no benefit to making the headache twice as large.

Even if Pakistan had no army and india attacks us, it still wouldnt be able to take kashmir in todays world because of the UN, just look what happened to saddam when he was having wet dreams of taking kuwait,
 
The increase is 6.3%. Thats not that high considering the inflation that's going on. Also the defense budget used to have double digit increases when PML N was in charge.
 
Even if Pakistan had no army and india attacks us, it still wouldnt be able to take kashmir in todays world because of the UN, just look what happened to saddam when he was having wet dreams of taking kuwait,

Yes, there are indeed a variety of reasons why India would never want to attack Pakistan to gain territory. Those who think otherwise don't have a very good understanding of modern day realities. This is not the world of a few hundred years ago.
 
The increase is 6.3%. Thats not that high considering the inflation that's going on. Also the defense budget used to have double digit increases when PML N was in charge.

Its incredably high because it deprives the nation in investing in proper areas like electrcity, having clean water and education, things which make nations prosper, even if we had a zero budget and india attacked us, the army is fully equipped to defend us against the poor equipment of indian army, the only reason you want more spending and a better army is if you are looking for a fight.
 
Its incredably high because it deprives the nation in investing in proper areas like electrcity, having clean water and education, things which make nations prosper, even if we had a zero budget and india attacked us, the army is fully equipped to defend us against the poor equipment of indian army, the only reason you want more spending and a better army is if you are looking for a fight.

If inflation is 10%, and the budget has increased 6%, then in essence its already a cut.

And considering that PPP and PML N used to give double digit budget increased to defense, their should be no complaints about what this government has given.

Its incredably high because it deprives the nation in investing in proper areas like electrcity, having clean water and education, things which make nations prosper, even if we had a zero budget and india attacked us, the army is fully equipped to defend us against the poor equipment of indian army, the only reason you want more spending and a better army is if you are looking for a fight.

Pakistan already spends alot on education, when you include the money spent by parents on private schools. Also Pakistan has doubled spending on public schools in the last decade, however higher spending does not necessarily equate to higher quality.
 
If inflation is 10%, and the budget has increased 6%, then in essence its already a cut.

And considering that PPP and PML N used to give double digit budget increased to defense, their should be no complaints about what this government has given.



Pakistan already spends alot on education, when you include the money spent by parents on private schools. Also Pakistan has doubled spending on public schools in the last decade, however higher spending does not necessarily equate to higher quality.

Inflation has risen to 11% which is due to food inflation, so it has nothing to do with defense budget increases, but thats not the point

PMLn and PPP were always going to increase the budget, they are pawns - this drama about NS being angry with generals is just a game, if he was anything what they claim, he would have cut the budget,

The differnce is that what i am saying is what IK had been preching for 20 years.

LAstly on education, parents spending on top private schools is about 0.1% of the pop. middle class private schools are very poor, secondly to develop a prograssive economy and country like khan claims, education at schooling level must be free for all with the same level of education at aitchson/roots and other elite schools at all schools.

educating the upper class does nothing for your country, they just leave when they grow up, these elite schools just produce talent for the west in reality.

The only way pakistan can become a developed society is when the lower class and middle class are given free and quality education. which can only happen if the defence spending is cut.
 
The government has proposed 15% further increase in salaries for all the ranks of the armed forces aimed at compensating minimal or no increase in their salaries during past two years and ending disparities in pay structures.

The Ministry of Finance has moved the summary for the consideration of the federal cabinet, which is based on recommendation by the Pay and Pension Commission, according to a senior official of the ministry.

Prime Minister Imran Khan has directed to place the summary in the next cabinet meeting, according to a summary that the federal cabinet will take up on Tuesday. The finance ministry has proposed "grant of special allowance 2021 at the rate of 15% of the running basic pay to all the ranks of the armed forces with effect from 1-07-2021". "The total (financial) impact would be Rs38 billion per annum," according to the finance ministry. The government has already budgeted the amount.

This will bring the total increase in the salaries of the armed forces to 25% after including 10% ad-hoc allowance that Finance Minister Shaukat Tarin had announced in his budget speech for civilian and armed forces employees. The Ministry of Finance has also separately notified 10% ad-hoc allowance for the civil employees.

In addition to 10% ad-hoc allowance, the federal government has also given 25% disparity reduction allowance to the civilian employees of the Pak Secretariat, bringing their total additional monetary benefits to 35% in the new budget. The civil Secretariat employees had protested discrepancies in the salaries of various government departments.

Now the salaries of the armed forces are proposed to be increased to 25%, subject to the approval of the federal cabinet.

The finance ministry stated that due to delay in receiving interim report, the federal cabinet had approved relief measures on June 11 wherein armed forces personnel along with civilian employees have been allowed an ad-hoc relief allowance of 10% of the basic pay.

"The Pay and Pension Commission chairperson has now forwarded recommendations for interim relief for the armed personnel till finalisation of recommendations in order to keep the morale of the armed forces high," stated the finance ministry.

It wrote in the summary that the ministry had sought permission of the prime minister to increase the armed forces salaries by further 15% who has directed to bring the matter before the federal cabinet.

Special Assistant to Prime Minister on Finance Dr Waqar Masood Khan did not comment. A federal minister said that the government would give a statement after the cabinet meeting.

For fiscal year 2019-20, the federal government had not given any increase in salaries to the armed forces and the civilian employees. A year earlier, the 10 to 15% increase had been given only up to grade 19 employees, leaving rest of the employees high and dry.

The sources said that this has created resentment in the ranks and files and the civilian and military employees were expected a minimum 20% increase in salaries in the budget speech. In its interim recommendation, the Pay and Pension Commission had also recommended 15% to 20% increase in salaries of both the civilian and armed forces.

The finance ministry has notified the 10% increase in salaries in the form of ad hoc relief which will be subjected to income tax while the allowance will be admissible during leaves. It also read that the ad hoc relief will not be part of the basic salary for commutation and increments.

Bringing civil service reforms was part of the government's agenda but things are moving at a snail's pace. The government hired an actuary firm in May this year to review the salaries' structure that will need at least six months to complete the assignment. It is unlikely that the commission will give its final report by December this year.

Published in The Express Tribune, July 10th, 2021.
 
The federal government has proposed a 2.69 per cent increase in the defence budget as Pakistan is facing an economic crunch and thus resorting to unpopular measures to avoid a potential default.

The budget document on Friday showed that the defence outlay for fiscal year 2022-23 would be Rs1,523 billion as compared to the revised defence spending of Rs1,483 earmarked for the ongoing fiscal. However, the proposed increase in defence spending reaches 11 per cent when compared with the pre-revision budget of Rs1,370 billion.

Observers, however, claimed that given the skyrocketing inflation in reality there was no increase in defence spending during the last three years.

Some observers say the increase in defence budget has not even covered the full impact of inflation.

A closer look at the budget details revealed that the Rs1,523 billion figure did not include Rs395 billion allocated for pensions of retired military personnel and Rs463 billion for the armed forces development programme as well as other essential expenditures.

According to the budget document 2022-23, out of Rs1,523 billion, Rs567 billion has been allocated for employee-related expenses, Rs368 billion for operating expenses, Rs411 billion for local purchases and import of arms and ammunition as well as Rs175 billion for civil works.

Interestingly, all three services—the army, navy and air force—were given an equal increase of 2.69 per cent in the budget, although the army takes the major share given its size and role.

Pakistan’s defence spending of almost two per cent of its GDP shows a decline compared to last year. The defence spending in 2020-21 was 2.8 per cent of the country’s GDP, the size of which has grown due to the rebasing of the economy.

On average, Pakistan spends $13,400 per soldier, India $42,000, Saudi Arabia $371,000, Iran $23,000 while the United States allocates $392,000 per soldier annually. The difference, however, between Pakistan and other countries is that the size of their economies is far bigger than Pakistan.

Observers believe that the increase in the defence budget is justified given the impending external and internal security challenges.

Despite the US troops’ withdrawal from neighbouring Afghanistan, Pakistan still deploys thousands of troops along the western border as well as in the erstwhile tribal areas to deal with the threat of terrorism.

Similarly, the tensions between Pakistan and India still persist, although the restoration of the ceasefire has brought some respite.

Meanwhile, given the unprecedented increase in oil prices, the military is taking measures to cut use of oil products. Friday has been declared a “dry day” meaning on Fridays except in emergency situations, no transport would be used.

Express Tribune
 
Defence budget

Commenting on criticism aimed at the defence allocation, the DG ISPR said the defence budget had actually been decreased in real terms after taking into account inflation and rupee depreciation.

The budget document on Friday showed that the defence outlay for fiscal year 2022-23 would be Rs1,523 billion as compared to the revised defence spending of Rs1,483 earmarked for the ongoing fiscal. However, the proposed increase in defence spending reaches 11 per cent when compared with the pre-revision budget of Rs1,370 billion.

Observers, however, claimed that given the skyrocketing inflation in reality there was no increase in defence spending during the last three years.

Citing “annual debate” on defence allocation after federal budget, the military spokesperson said the military expenditure was based on the "threat perception, challenges, deployment and the resources available".

“Considering all factors, the military has not sought any increase in the budget since 2020… defence budget was actually reduced. It was 2.8pc of GDP last year and now it stands at 2.2% so the defence spending is going down in GDP terms.”

Speaking about the austerity measures, Gen Babar said instructions for conserving fuel and curtailing expenditures have been issued.

Military would observe Friday as a "dry day" when no official transport would be used except for emergencies.
 
Pakistan has slashed the armed forces development programme by Rs72 billion or one-fifth of the allocation made on June 10 in order to meet a major condition of the International Monetary Fund (IMF) about achieving primary budget surplus in the new fiscal year.

Having a primary budget surplus of Rs153 billion or 0.2% of the national output is one of the core conditions of the IMF for the revival of the bailout package. Finance Minister Miftah Ismail now hopes to clinch the staff-level deal before the end of this week.

The original budget that the government tabled in the National Assembly on June 10 showed Rs363 billion allocations for the armed forces development programme. However, the budget provision has been reduced to Rs291 billion, according to the revised budget that the Ministry of Finance made public after its approval from the National Assembly.

It has cut the armed forces development programme by Rs72 billion or nearly 20%. The allocations are in addition to the regular defence budget. It is the second time in as many years that the armed forces development programme has been slashed due to fiscal constraints and limitations imposed by the IMF.

For the last fiscal year, the previous government had allocated Rs340 billion for this purpose but the actual spending has been shown at Rs270 billion, according to the budget books. Last year, The Express Tribune had reported that the then government decided to reduce allocations for the military’s contingency obligations.

When contacted, an official of the Ministry of Finance said that the armed forces development programme had to be reduced to bring down overall expenditures in a shape where the primary budget surplus target of the IMF could be achieved.

The government has set the primary budget surplus target at Rs153 billion or 0.2% of GDP on back of Rs750 billion provincial cash surpluses. However, the provincial budgets do not reflect the Rs750 billion savings and the IMF asked the government to secure the provincial endorsements through memorandum of understandings (MoUs).

The Khyber-Pakhtunkhwa government has linked the signing of the MoU with the federal government’s ability to provide requisite funds to meet the needs of the erstwhile Federally Administered Tribal Areas (FATA). These areas have been merged with the K-P province.

K-P’s Finance Minister Taimur Saleem Jhagra met with Ismail to find an amicable way out. “Our objective is not to be obstructive to signing of the MoU and the provincial cabinet has already given authority to the chief minister,” Jhagra said while talking to The Express Tribune.

The provincial finance minister said that, however, it was important that the issues raised in a letter sent to the finance ministry are resolved and a positive step was taken on Tuesday during a meeting with the federal finance minister.

Although all the four provinces seem committed to signing of the MoUs, none has effectively shown provincial budget surpluses. The Punjab government that had earlier given a surplus budget on Monday announced over Rs100 billion electricity subsidies. This has eroded any surplus left besides exposing other provinces to similar demands from their poor people.

In an interview to a private TV channel, Ismail said that the government on Tuesday gave a “comprehensive reply to the IMF on the draft Memorandum for Economic and Financial Policies and a staff level agreement can be reached within two to eight days”.

The IMF had shared the MEFP last Monday and then Ismail had promised to sign the deal within one week but he could not close the gaps. Ismail has also briefed the military leadership about prospects of the IMF deals, telling it that the agreement could be reached by Thursday, according to the sources.

After staff level agreement, Pakistan will have to implement all the conditions agreed with the IMF before the executive board of the global lender approves the loan tranche and declares completion of the 7th and the 8th reviews of the bailout programme.

To satisfy the IMF, the government made adjustments in other expenditures with the total size of the budget now being Rs9.6 trillion –higher than proposed on June 10. The stated defence budget has been further increased to Rs1.567 trillion – an increase of 14.1% or Rs194 billion over the last year’s original allocation. Compared with June 10, the defence budget has been increased by another Rs41 billion.

The cost of civilian and military pensions has been increased to Rs609 billion – up from Rs530 billion three weeks ago. A major condition that still remains outstanding is notifying the Rs3.51 per unit increase in electricity prices from July 1. The government will also have to hand over the cabinet’s decision to further impose Rs10 per litre levy on petrol from August 1 to the IMF.

Ismail said he had secured the PM’s approvals on Tuesday for all necessary actions. The IMF has also set the condition that Pakistan should review its anti-corruption laws. The condition has been imposed after the recent amendments to the accountability law that unsettled the global lender.

Ismail said the IMF had asked for a diagnosis of the corruption laws in consultation with the international experts.

Express Tribune
 
I'm all for the army decreasing it's budget but not at the behest of the IMF
 
The government aims to spend Rs1.804 trillion on defence over the next year, which is around 13 per cent higher than the revised allocation for the outgoing year.

The defence budget makes up nearly 1.7pc of the GDP and 12.5pc of the total expenditure planned by the government for the next year, the budget documents for the 2023-24 fiscal year showed on Friday.

Last year, Rs1.57tr was allocated for defence affairs and services. However, it was later revised higher to Rs1.59tr.

A breakdown of the latest allocation reveals that the army, as always, got the lion’s share of Rs824.6 billion of the total budget, followed by Pakistan Air Force Rs368.5bn, and Pakistan Navy Rs188.2bn.

Allocation accounts for 1.7pc of GDP

Likewise, the pension of retired military officials also increased by 26pc to Rs563bn, from Rs446bn in the outgoing fiscal year.

The military’s pension, however, is not included in the budget meant for defence services, while other defence-related procurements and strategic programmes are not itemised in the budget, including the budget for strategic nuclear arsenals.

As per details of the defence budget, Rs5.4bn has been allocated for defence administration, Rs705bn for employees related expenses, Rs442bn for operating expenses, Rs461bn for physical assets and Rs195bn for civil works.

This defence services estimates also includes salaries and allowances paid to troops in uniform and civilian employees; operating expenses include transport, petroleum, oil and lubricants, rations, medical treatment, training, etc.; physical assets utilised for local purchases and import of arms and ammunition and related procurements; and civil works that include funds marked for maintenance of existing infrastructure and construction of new buildings.

The government has also allocated Rs3.4bn for ongoing and new schemes of the defence division under the Public Sector Development Programme (PSDP) 2023-24.

Of this, the government has allocated Rs3.3bn from the local component and Rs5 million from the foreign aid component.

Under the ongoing schemes, Rs190m has been allocated for the developing ICT and Artificial Intelligence-Based Precision Agriculture System utilising dual-use Aerospace Technologies-Green AI, Rs853m for setting up the National Aerospace Science and Technology Park (NASTP) and Aviation City Pakistan (ACP), and Rs60m for a feasibility study for establishing the National Spatial Data Infrastructure (NSDI) for Pakistan.

Moreover, Rs40.4m has been set aside for establishing the Institute of Inclusive Education in Islamabad, Rs223.6m for establishing the National University of Pakistan in Islamabad, Rs170m for NIHD Centre of Excellence for Preventive, Cardiovascular Research and Deve*lopment (NEPCARD), Rs558.1m to acquire land from CDA for establishing a medical city in Islamabad by the National University of Medical Science (Phase-I), and Rs17.46m for the water distribution network for RCB/CCB based on Khanpur Dam Water Source (Phase-III).

Besides, Rs9m has been allocated for establishing New Generation National Geodetic Datum of Pakistan, Rs272m for procuring modern drones for the aerial photographic survey, Rs300m for indigenous construction of five fast response boats (FRBs), Rs123.89m for establishing a tech assessment lab, Rs282.541 for building a dual carriageway at Charar drain from Burki Road to Kamahan via Baidian Road (5km), Rs100m for upgrading Zarrar Shaheed Road Drain (3km), Rs100m for building a road from BRB Canal to Hadyara (9km), and Rs100m for building a road from Azam Chowk Kamahan to Lidhar Baidian Road (7km).

The government has also allocated an amount of Rs2bn for the two ongoing projects of Defence Production under the next fiscal year’s PSDP.

Under the ongoing projects, Rs100m has been allocated for establishing a project management cell for creating a shipyard at Gwadar and Rs1.9bn to upgrade the infrastructure of Karachi Shipyard and Engineering Works.

https://www.dawn.com/news/1758922/budget-2023-24-defence-budget-goes-up-13pc-to-rs18tr
 
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