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Pakistan: Inside the Military Budget

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Pakistan: Inside the Military Budget | Opinion Maker

Pakistan: Inside the Military Budget

Posted on 06. Jun, 2011 by Dr Raja M Khan in Pakistan Forces

By Dr. Raja Muhammad Khan

For the financial year 2011-12, the Government of Pakistan has increased the country’s Military budget by 12 percent. This also includes the 15% increase in the salaries of the employees. The total amount of the budget is Rs. 495 billion, compared to Rs 442 billion for the year 2010-11. In term of USD, the total amount is about $ 5.75 bn. The Finance Minister while justifying the increase in the defence budget said, “We live in a difficult neighbourhood. We are faced with threats to our security. We remain engaged in a struggle for the safety of our citizens. We are the victims of war on terrorism.” This is a great reality, the Finance Minister has highlighted. However, the country is confronted by enemies from within as well as from across the geographical frontiers of Pakistan. Now a day, meeting the internal challenges to the security of Pakistan has become more daunting and cost effective than the external threats. Since the commencement of the so-called global war on terror in 2001, and combat actions against the terrorists, Pakistan has badly suffered in term of its combat manpower, weapons and equipments and above all attacks on its civil and military installations, public places and all those having no connection with the war on terror.

While analysing the defence budget, one would know that, over the last few years, there has been a decline in the defence budget of Pakistan in practical terms. This is indicative from the fact that, during year 2010-11, in term of GDP share, the defence allocation was 2.6 percent. Whereas, despite an increase of 12 percent, the “GDP share of defence allocation for the next year (2011-12) would go down to 2.4 per cent”, a decrease of .2 percent. As analysed by Dawn Group of news paper, “There has been a steady decline in defence services’ slice in the GDP cake over the years.”This decline can be attributed to inflation, which as an average was 14.1 percent and is continuously increasing over the years. Over the years this practice is going on, contrary to an apparent increase in the military budget.

Inside Defence budget, there are various heads. First is the Ministry of Defence itself. Out of the total defence outlay of Rs. 501.85 billion, Rs. 495 billion would go the Military i.e. three services viz; Army, Navy and Air Force. The share of three services is rationalized based on the strength of the each service and the requirement for the weapons and equipment for a particular year. As revealed over 50 percent of this total Military budget, is expended on the employees’ related expenditures. Remaining amount is then further divided into various heads. At the level of Defence Ministry, the Airport Security Force, the Survey of Pakistan, Meteorology Department, and FG schools and colleges also consumes a big chunk of the defence budget. This aspect is known to very few people that these departments and others like Controller of Military Accounts are also paid out of defence estimates.

In the global market as well as domestically, owing to price hike and inflation, every year the cost of the equipment/ items, essentially needed to be purchased increased reasonably. This in turn necessitates an increase in the defence budget, an unavoidable phenomenon. For the financial year 2011-12, the operating expenses of the three services has been estimated as Rs. 128.28 billion, compared to Rs. 111.24 billion during year 2010-11, whereas, the employees expenses (including the 15% rise in the salaries) has been estimated as Rs. 206.5 billion. Similarly, the amount for civil works has been estimated as Rs. 42.6 billion, whereas, physical assets would remain as Rs. 117.6 billion for all three services.

Compared to $34 billion, declared Military budget of India, passed by Indian Parliament in February this year, Pakistani Military budget is just 5.75 billion, which indeed is a very small. According to Stockholm International Peace Research Institute (SIPRI) the Military Expenditures of India are $41.3 billion. India doesn’t disclose its actual defence spending. However, India remain the main adversary of Pakistan, as there have been three wars between both countries and owing to Indian designs of undoing the Pakistan, as witnessed in 1971, we cannot become a status quo nation. Given the chance, India would go all out to undo Pakistan, the only country resisting its hegemonic designs in South Asia. Through its alliances with the major world powers, and establishing itself in Afghanistan, in the garb of so-called re-construction, India is posing very serious threats to the security of Pakistan from its western borders. Thus we cannot remain aloof of all these happenings. Beside Indian ill designs, Pakistan, “has constantly been suffering because of the existing security situation." And as per Dr Abdul Hafeez Shaikh, “We stand by our valiant men, who are laying down their lives to safeguard our country.”

As per Stockholm International Peace Research Institute (SIPRI), there has been a universal increase in the military budget of all countries. United States has increased its “military spending by 81 per cent since 2001, and now accounts for 43 per cent of the global total, six times to its nearest rival China. At 4.8 per cent of GDP, US military spending in 2010 represents the largest economic burden outside the Middle East.” As per the latest figures provided by SIPRI, the top 10 military spenders of the world till 2010 are: United States ($698 billion), China ($119 billion), Great Britain ($59.6 billion), France ($59.3 billion), Russia ($58.7 billion), Japan ($54.5 billion), Saudi Arabia ($45.2 billion), Germany ($45.2 billion), India ($41.3 billion), and Italy ($37 billion).

In the Sub-continent, India has been spending a huge sum of amount on its military budget ever since. Being in the club of top ten military spenders, there has been a constant increase in the Indian defence Budget since last two decades. Indian is modernizing its three services on the line of the militaries of United States, United Kingdom, and Russia. However, owing to its weak economy, Pakistan cannot match the Indian defence spending. Nevertheless, it should maintain at least the minimum credible deterrence to ensure its safety and security in the wake of enmity all around; domestically against extremists and terrorists and externally, those also promote internal instability too.

Incidents like US raid to haunt OBL and the terrorist attack on the PNS Mehran Base, though very serious breaches of security, but, should not frustrate the nation from supporting its armed forces. On their part, Armed forces should indentify their flaws and make utmost efforts to come up to the expectations of the nation, to maintain the sovereignty and integrity of Pakistan in the world which is anarchic in character and played by power politics.
 
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Whereas, despite an increase of 12 percent, the “GDP share of defence allocation for the next year (2011-12) would go down to 2.4 per cent”, a decrease of .2 percent.

Just a little correction,the change is of 0.2 percentage points and may not actually be 0.2 percent.

All in all,I find this article to be quite informative.I would have personally liked to see more focus on WoT and the growing threat of militancy inside the country,rather than on the neighbours to their west.The money spent keeping the Indian aggression in mind is money lost in my opinion.We are much more concerned with ourselves and our economy,and I see no possible reason to attack Pakistan.There is a possibility of peace talks and negotiations.I am hopeful that the leaders of both the countries will walk in that line.
 
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well control the beaks of your politicians and higher ups who have more often than not had this (very bad) habit of snide and 'troubling' remarks which force us to take preventative action......kind of like how world tells Iran to tone down its rhetoric on israel. Rhetoric matters here.

being the smaller country, we do NOT respond well to threats...

now off course you can bring up militancy and how many lives it has claimed....and we are working and doing what we can (within our means and resources at disposal -and despite misunderstandings and some mis-trust even with certain 'allied' countries)

this isnt a war that would be won over-night.....counter-insurgency is more than just about budgets and we can see that in Afghanistan and Iraq where ten dollar shaped-charge IEDs can obliterate far superior armed NATO forces and their 4-wheeled armoured assets. You have to adapt to their thinking and their tactics and truth be told you have to have the PEOPLE on your side --the people especially whom are living in the same environment as these miscreants.


but why should i waste time explaining all this to somebody who doesnt understand why Pakistan has a right to defend itself from ALL external threats...
 
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Always love the planted opeds from the Dr who no one has ever met. The Major or Lt Col who writes these should be sent to writing school first.
 
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^^Never knew Maj and Lt Col of this 'improvement-starved' fauj can write (read conceive) opeds.

BTW, how about concentrating on the 'clarifications' raised in the article?
 
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If the figures are correct, Pakistan's defence budget is quite small - only $5.7 Billion? Officially, Israel's defence budget is $16 Billion, not including security agencies under the Prime Minister's Office. And Israel's military is smaller than Pakistan's.

I guess then that the readiness and equipment of Pakistan's military is quite modest. Maybe it is another explanation for its mixed performance both in conflicts with India and in the fighting against militants in FATA and former NWFP.
 
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If the figures are correct, Pakistan's defence budget is quite small - only $5.7 Billion? Officially, Israel's defence budget is $16 Billion, not including security agencies under the Prime Minister's Office. And Israel's military is smaller than Pakistan's.

I guess then that the readiness and equipment of Pakistan's military is quite modest. Maybe it is another explanation for its mixed performance both in conflicts with India and in the fighting against militants in FATA and former NWFP.


Yea...considering a large part of that comes from the US.......plus the F-16s and F-15s.

In Pakistan's case, US just pays us the amount for our side of WOT and sustaining US operations.
 
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Yea...considering a large part of that comes from the US.......plus the F-16s and F-15s.

In Pakistan's case, US just pays us the amount for our side of WOT and sustaining US operations.

Yeah US pays 6 Billion USD a yr to finance Israels military budget
Even the 25 odd F35A which IsAF is acquiring will come from american taxpayers
 
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By the way Pakistans over all defence budget is 8-10 Billion USD
Coz defense budget doesnot include salary of paramilitary forces and equipment bought through US aid
 
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By the way Pakistans over all defence budget is 8-10 Billion USD
Coz defense budget doesnot include salary of paramilitary forces and equipment bought through US aid

It still quite low for a military with more than half a million men which needs to sustain its manpower. Officially, India's defence budget is more than $30 Billion, between three to seven times more than Pakistan. As time goes by, Pakistan's capability to balance India's military supremacy in South Asia diminish.
 
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It still quite low for a military with more than half a million men which needs to sustain its manpower. Officially, India's defence budget is more than $30 Billion, between three to seven times more than Pakistan. As time goes by, Pakistan's capability to balance India's military supremacy in South Asia diminish.

Well one can not compare Indian budgets(be it any defence or civilian) with Pakistani budgets.

Indian defence budget at $ 36 billion is more than Pakistani annual budget it self.($ 32 billion)

But that is because India economy(at $ 1.53 trillion) is almost 8 times bigger than Pakistani economy($200 billion) and is growing at almost 4 times faster rate than Pakistan's.(8.6% vs 2.4%)

other than that this figure of Rs 495 Billion ( $5.8 Billion) is not the actual defence budget a part of it.

Total Pakistani expenditure on defence stands at Rs 850 Billion approx.($ 10 Billion).

As expenditures like WOT, pensions for retired defence personnel etc are not included in this head.
 
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Well one can not compare Indian budgets(be it any defence or civilian) with Pakistani budgets.

Indian defence budget at $ 36 billion is more than Pakistani annual budget it self.($ 32 billion)

But that is because India economy(at $ 1.53 trillion) is almost 8 times bigger than Pakistani economy($200 billion) and is growing at almost 4 times faster rate than Pakistan's.(8.6% vs 2.4%)

other than that this figure of Rs 495 Billion ( $5.8 Billion) is not the actual defence budget a part of it.

Total Pakistani expenditure on defence stands at Rs 850 Billion approx.($ 10 Billion).

As expenditures like WOT, pensions for retired defence personnel etc are not included in this head.

Thanks for the explanation but the consequence is the same: Pakistan is fighting a lost cause for power balance with India.
 
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Total Pakistani expenditure on defence stands at Rs 850 Billion approx.($ 10 Billion).

As expenditures like WOT, pensions for retired defence personnel etc are not included in this head.
Who told you this?
By the way Pakistans over all defence budget is 8-10 Billion USD
Coz defense budget doesnot include salary of paramilitary forces and equipment bought through US aid

Paramilitary forces are not part of MoD, instead they come under MoI. (Never knew this was not the case in india?). So it doesnt require much common sense to understand that paramilitary budget is not included in the defence budget.

Also, it were the 'pensions' NOT the salaries that wasnt part of the defence budget.

Lastly, as for your $10 B expenditure (in a year), well guys, i think you missed this:

COAS also informed the forum that the often "mis"quoted figure of US $ 13-15 Billion utilised by the Army in last ten years is misplaced. Under the head of Coalition Support Fund (CSF), against a total sum of US $ 13 Billion expected from the US, only US $ 8.6 Billion have been received by the Government of Pakistan. The Government has further made available only US $ 1.4 Billion to the Army over last ten years. A relatively smaller amount has gone to Navy and PAF as well. The rest i.e. approximately US $ 6 Billion, have been utilised by the Government of Pakistan for budgetary support which ultimately means the people of Pakistan (The figures quoted here have been reconciled with the Ministry of Finance).


http://thenews.jang.com.pk/NewsDetail.aspx?ID=16793
:: ISPR :: Inter Services Public Relations - PAKISTAN
Reading the military

This means that a TOTAL of $ 8.6 B has been received by the GoP over the ENTIRE duration of the past 10 years since we entered the operations. But it is funny to see you guys totaling up only One year's budget to over $ 10 B.



To clarify as regards to the CSF i'll quote Agno:

As pointed out already - CSF payments are not aid, they are reimbursements for expenses incurred by Pakistan for anti-terrorism and Coalition Support operations (necessitated by the US invasion of Afghanistan) that the US has agreed to fund.

Pakistan spends the money on these operations out of its own pocket and the US later reimburses Pakistan for the amount it approves. In the past few years these reimbursements have been delayed by up to two years, and AFAIK, there is currently a backlog of over a billion dollars delayed by over a year.

The earlier posts in the thread talk break down the CSF reimbursements, military aid and budgetary aid numbers. The latter two would qualify as 'aid'.



P.S. Ares, i would like that you explain how the current budget is not 'actual', how it is 'only part of it' and how our defence budget is Rs 850 B or $10 B?
 
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