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ISLAMABAD: The defence ministry has insisted that increase in the defence budget for the next financial year was necessitated by the challenging security environment.
“The critics need to also realise the security environment that Pakistan faces today and economic determinants of security,” the defence ministry said in a rare statement on Monday.
The defence spending is proposed to increase to Rs 1.1 trillion (approximately $9.6 billion) in 2018-19.
The ministry maintained that the “economy of any country cannot grow without security, peace and stability”.
The proposed allocation of Rs1.1tr is being compared with the original allocation of Rs920bn for the outgoing year, which has been computed as an 18 per cent hike — the highest in decades.
However, the outgoing year’s allocation was increased by around 8pc during the course of the year to Rs 998bn. The defence ministry now wants this year’s allocation to be compared with the revised figures, instead of the original allocation, because it wants to avoid the sharp rise in defence spending getting public attention.
“Defence budget for the year 18-19 stands at Rs1,100bn which is 10.2pc increase to the closing year. The routine yearly increase ranges between 10pc and 12pc which caters for inflation, depreciation, rise in pay etc,” the ministry said.
“This year increase in defence budget is also considered a normal increase, keeping in view all internal and external challenges posed to Pakistan,” it added.
Journalists usually measure the defence allocations in terms of the percentage increase over previous year. This does not give a correct view. Therefore, defence budgets for a more realistic analysis are measured in terms of percentage of both overall public spending and of Gross Domestic Product (GDP).
Defence spending share in terms of both total outlay of the budget and percentage of GDP have been going up. Over the past decade or so defence spending was reduced to less than 3pc (around 2.6pc) of GDP and similarly its share in the national pie was also reduced to well under 20pc. It is now once again set to reach 3.2pc of GDP and 21pc of the total outlay for the next year.
Published in Dawn, May 1st, 2018
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Comments (74) Closed
May 01, 2018 07:46am
This is how a nation gets bankrupt.
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May 01, 2018 07:52am
21% of national budget is spent on armed forces and it does not include another 7% spent on pension for defense retirees. It is more than combined expenditure on education, healthcare, water resources, public transportation including Pakistan Railways and social services including BISP.
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May 01, 2018 08:09am
It's justified if it's required but then accounts should be kept for each penny spent
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May 01, 2018 08:24am
freer media and democracy means that people are starting to question the defence budget. the generals must be worried. they've never had to justify their budget to us before.
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May 01, 2018 08:25am
This obsession of securing peace with more expenditure on military would bleed Pakistan to death eventually. If India spends the same percentage of GDP on defence the amount would be approximately 85 billion dollars. How far can you compete?
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May 01, 2018 08:44am
Military is one place where everyone pay's taxes. Who ever pays his tax gets the raise.
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May 01, 2018 08:46am
While I strongly believe that security is very important and vital to Pakistan we must also must balance expenditures in Education, police and debt servicing otherwise we will be stuck in a vicious cycle.
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May 01, 2018 08:59am
Military expenses suck the resources to the detriment of economic and social developments. We are not facing any wars; why then such huge increase?
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May 01, 2018 09:25am
Should be more, Am sure is more, because of the requirements and situation faced by Pakistan in its borders. Airforce need to have special consideration, Infact a special tax should be put up for purchase of jets for immediate requirements and then R&D for the local production of new versions of jets. An Airforce second to none, so that rogue nations are put to rest.
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May 01, 2018 09:26am
Indian defence budget will be exactly five times of Pak's defence budget!
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May 01, 2018 09:45am
We should stop competeing with India. This competition is what exactly India wants. By competeting we will outspend and become bankrupt in few years. India will win without firing a bullet
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May 01, 2018 09:47am
@ROCKY How many times is the Indian economy compared with Pakistan!!!
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May 01, 2018 09:56am
@Mclean True brother. It is time to find alternate measures of bringing peace and security, other than with weapons and military might. Those days are gone.
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May 01, 2018 10:02am
Are Chinese and Russian armaments as expensive as their equivalent American substitutes? Surely, as in the civilian goods, these ought to be much cheaper and the country should save money by buying such products from these sources. There should be no need to increase the defence budget in that case, rather a decrease would be justified.
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May 01, 2018 10:03am
This shows your priority. Education or health comes at the bottom of the list.
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May 01, 2018 10:08am
What Security environment? Checkposts everywhere feels like martial law. Defence budget going to DHA, AWT. Let others praise you, People don't praise themselves!
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May 01, 2018 10:13am
Bangladesh has almost same population and same neighbor ( India).It is not even nuclear power. Still it manages with 3 Billion Dollar Defense Budget (and mind it India has not invaded or captured it).Come out of insecurity and put money to education health and poverty elimination.
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May 01, 2018 10:14am
security is directly related to economy
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May 01, 2018 10:23am
After spending huge sum of money there is no peace and security. Wanton killings by suicide terrorists are a security failure.
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May 01, 2018 10:39am
How can such high military expenses be justified. Create imaginary enemies.
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May 01, 2018 10:46am
Defence budget is 21% of the total annual expenditure without including defense pensions and foreign arms acquisitions. The defense budget will increase further if these were to be included.
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May 01, 2018 11:16am
So defense is necessary to have stability in country ? Tell me why we haven't got modern scanners installed in each province ? Why don't we have satellite monitoring movements of terrorist in Pakistan ? Why we have jobless country ? Why there isn't enough stability while all the times budget has been used only on Defense ? What stability have you brought since Pakistan came into existence ? We have see situations worsening only, so don't give is this vague stories of stability R.I.P the illiterate people of Pakistan.
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May 01, 2018 11:17am
Defence comes first, there should not be two opinion about it. Given the current hostile situation directed towards Pakistan there should be even bigger budget for defence of Pakistan.
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May 01, 2018 11:39am
Nothing should be taken for granted like the "routine 10% hike in pay and benefits etc." Ask people in the private sector, do they get routine 10% hikes year in and year out. I don't think so. Why are the government salaries increasing at a rate which is unsustainable especially considering the precarious deficit financing that the country is experiencing? The govt spent 600 billion more than allocated in the budget for 17-18, the circular debt and IPP payment crisis is ballooning again and not accounted for in the budget, public sector losses keep mounting? This isn't a budget, this is a non-budget. Make hay today, who cares about tomorrow.
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May 01, 2018 11:40am
This is exactly how and why Soviet Union went bankrupt and broke into peices
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May 01, 2018 12:17pm
The huge defense budget is rendering the nation defenseless economically!
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May 01, 2018 12:20pm
In an era where US subsidies have all but gone... this was inevitable...
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May 01, 2018 12:28pm
Lets keep secure Pakistan from external threat but Kill by own hand Internal using hunger, poor
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May 01, 2018 12:32pm
Inadequate defence budgets would lead to a rise in insecurity internally and externally.
I support the defence budget increase
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May 01, 2018 01:09pm
@L.Ahmad "After spending huge sum of money there is no peace and security. Wanton killings by suicide terrorists are a security failure." That would be the job of interior ministry which has a separate budget for law an order, complain to them.
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May 01, 2018 01:19pm
No security = no country. need to generate more wealth to support other sectors such as education health transport social care and communication.
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May 01, 2018 01:22pm
Although I do understand that there are military needs that can not be forgone, however, it is also true that this is burdensome for the economy to handle.
The solution to this is to either reduce the spending, or increase the GDP. I don't think the spending can be reduced, since cheaper versions of commodities might not get the job done, so I can only hope that the next government can expand the economy enough so that it can more efficiently provide the military with the $$$.
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May 01, 2018 01:25pm
Pakistan spends 3.4 pc of its GDP on military expenditures while India spends only a comfortable 2.5 pc. Yet it still manages to spend six times as much as Pakistan. Considering that Indian economy continues to grow much faster than Pakistan, the gulf between Indian and Pakistan military spending is only set to widen even more in the coming years.
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May 01, 2018 01:35pm
we are not investing in people but over investing in protecting state which would bankrupt without investing in people. What exactly the security is for? A country without financial security is more likely to go unstable over a country with financial security. And here are we thing putting all eggs in one basket with China free us from fincial responsibilities.
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May 01, 2018 01:36pm
Defense comes first. Without it all else is irrelevant, ceases to exist.
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May 01, 2018 01:37pm
As CPEC picks up, we should increase the defense budget even more. There is no price on freedom. Look at Kashmiris in IOK and Afghanistan under soviets and US occupations. Money can be made up but freedom has to be guarded at all cost.
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May 01, 2018 01:39pm
Please please please deploy atleat 3 nuclear submarines for our strategic defence so one is always on duity deep in the ocean while the other two are undergoing service.
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May 01, 2018 01:42pm
All those who are against defence spending and would like more on education, infrastucture and helthcare are forgetting that Pakistan is in a state of war and that the Armed Forces are delivering. It is the civilian institutions which has failed to delives basic services. So instead of being keyboard worriors you people should hold your own votes and your own civilian politicians to account.
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May 01, 2018 02:11pm
Let me tell you what's going to happen in future in Pakistan, I am not an astrologer but than if you analyse the situation rationally and if you know all the steps so far, it isn't impossible to predict the next one. With most of the budget money going to defense and debt financing there would only be precious little left for development, like for e.g. spending on something like education and industry. What will this do? well, you will have a big uneducated unemployed manpower, which would demand jobs and since government didn't have any new industry, this manpower surely won't be absorbed, with the result that there would be agitations, protests etc. Government will than ask the military to control the situation.
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May 01, 2018 02:27pm
We can all tighten our belts for a few years nothing wrong with it. We need military might to take on India.
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May 01, 2018 02:29pm
So increase in defense budget means all operations have failed and we are back to square one? I thought zarb-e-azb & Raad-ul-Fassad eliminated majority of the problems. Now why this hike? What are they hiding from us?
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May 01, 2018 02:54pm
The only way out is to change policies to improve ties with India. A no-war pact with India would help Pakistan immensely. Please see how India is re-setting ties with China.
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May 01, 2018 02:58pm
Only way the country can grow is by having vibrant economy and healthy foreign investments but that can’t be achieved without having stability and security in the country. How much of the civilian budget actually gets delivered to civilians and how much of that goes to the corrupt politicians.
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May 01, 2018 03:12pm
Only $9.6 billion..I think Pakistan need to spend more in order to maintain the stability in the region!!!
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May 01, 2018 03:34pm
@ALI True & it is proposed if the govt can increase export, widen tax base, reduce corruption & flight of illegal money, tax agriculture sector, get the illegal money back to the country, sell-off loss making organizations, we do not need any loans & we can make our country prosperous & safe.
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May 01, 2018 03:38pm
@SHAHID SATTAR you need to pay when you buy from Chinese or Russians. They don’t give alms like USA.
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May 01, 2018 03:40pm
Support army
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May 01, 2018 03:40pm
@kamal better than being invaded or a proxy
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May 01, 2018 03:42pm
Pakistan has too many enemies outside and within.
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May 01, 2018 03:43pm
None of the negative commentators pay taxes.
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May 01, 2018 03:45pm
And that's why we have security threat for the last 70 years. We don't have illiteracy threat or health threat. We have only security threat to address.
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May 01, 2018 04:50pm
Look at Russian's military spending and their Economy. learn from them.you dont have to be a graduate or genious to understand.
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May 01, 2018 05:16pm
@M Wasim K "Should be more, Am sure is more, because of the requirements and situation faced by Pakistan in its borders. Airforce need to have special consideration - second to none, so that rogue nations are put to rest"
I wonder, with such attitudes right at the top, not only among us the people and the establishment stooges among us, what will be our future. USSR comes to mind. If we are broke, everyone needs to tighten our purse-strings, not only the civilians. I wonder when some external factors rein in those attitudes.
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May 01, 2018 05:29pm
@Shah Excellent idea.
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May 01, 2018 06:49pm
@Najeeb Best comment. Sums up the whole issue.
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May 01, 2018 07:18pm
You need to choose priorities right. If you have defensive armed forces, you will not require to spend much on armed forces. If you have offensive designs, which will eventually lead to total destruction, you may have to spend more. Education, healthcare, quality life matters to everyone as you live only once.
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May 01, 2018 07:22pm
Conventional defense should be upgraded and maintained without major spending and continued re-furnishing of existing weapon systems should be performed to limit cost. Competing with neighbors particularly India through spending more on new arms does not make sense. India is more likely bankrupting its resources by spending excessively on new weapons purchases with a minimum of human resources development for in-house development. Pakistan should not follow Indian policy blindly to fall into the trap of possible bankruptcy but rather should focus more on human development and self reliance through in-house development. Pakistan has great human and material resources that can be developed and used if a good government comes into power that focuses more on accountability, merit, self reliance and equal opportunity for all.
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May 01, 2018 07:29pm
@Iqbal 100% agree
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May 01, 2018 08:09pm
Just increase the allocation by 18% same as defense for education and health. But there is no money for it as defense and debt take major share.
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May 01, 2018 08:38pm
@MONIER If there is any country at risk of going bankrupt, it is Pakistan which spends 3.4pc of its GDP on military expenditures even when burdened with a mountain of current account deficit. While the Pakistani economy is kept afloat by Chinese commercial loans taken at exorbitant rates, India has a much larger economy which is growing faster than Pakistan and yet it spends only 2.5pc of its GDP on defense.
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May 01, 2018 09:35pm
Has it ever said it is not justified? ever?
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May 01, 2018 09:55pm
$10 Billion is not much, Pakistan can spend more! I guess India played smartly by keeping border hot. It will bleed Pakistan.
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May 01, 2018 11:01pm
Pakistan spends far less on its defence than the threats it faces.
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May 01, 2018 11:25pm
This is not a defense budget increase. This sounds more like an "attack budget" increase. Most small south Asian countries have paltry defense budgets.
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May 01, 2018 11:55pm
There is no justification for it. It is simply robbing the public.
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May 02, 2018 12:11am
Agree with hike, we need strong defence.
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May 02, 2018 02:58pm
Pak needs to increase it's Defense Budget based on the present security scenario
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May 02, 2018 04:41pm
for those criticizing the defence matters and the expenses, peace doesn't come free of cost; be it a nation like Pakistan or America. We are living in a hostile world fueled by powerful states' interests and belligerent designs to cease the resources of weaker nations.
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May 02, 2018 05:37pm
No budget of country can be justified unless the people are confortable
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May 02, 2018 09:12pm
We can't keep people defenceless against arch rival India.
We need strong defense force, defence budget abd public support.
No discussion about it.
Stop Bickering.
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May 02, 2018 09:31pm
Peace through strength.
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May 03, 2018 03:06am
21% of our annual expenditure on defense budget alone is extremely high by any standard. No wonder we have no money left then for health, education, etc. I was looking at India's figure, and they spend just 12% of their annual expenditure on defense. Why can't we be in line with that? This will ruin us economically in the end, if we don't follow the norms of most other nations.
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May 04, 2018 08:03am
Actually USD10 billion is not a very big amount for Defense expenses. The problem is in percentage terms it becomes very high as Pakistan is a very small economy. Our TCS company alone have a more than USD 100 billion m.cap. RIL alone earns a cash profit of approx USD 6 to 7billion.
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May 04, 2018 07:01pm
@SUBASH MISHRA TCS's market cap alone is more than that of all companies listed in Pakistan put together.
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