Pakistan's defence budget cut - retracted. Increased by 7.

[Khalsa]

Pak announces 'cut' in defence budget, wants India to follow

ISLAMABAD: Announcing "a cut" in Pakistan's defence expenditure, Prime Minister Yousaf Raza Gilani today said it was a "tangible display" of its desire for peace with its neighbours and indicated that he wanted India reciprocate the move.

Making a policy statement in parliament, Gilani said, "As a measure of our tangible display to seek peace with our neighbours, we have decided to freeze, actually reduce, the defence budget when seen in the context of inflation and the rupee-dollar parity."

Without naming India, he added: "We hope to see a reciprocal gesture from our neighbour for the sake of peace and prosperity of the region."

The Pakistani premier, however, did not give a figure on the proposed reduction in the defence budget which was Rs 275 billion last year and equal to nearly three per cent of the GDP.

Gilani's statement came in the backdrop of a major financial crisis faced by Pakistan. Rising global food and oil prices have fuelled double-digit inflation since Gilani's Pakistan People's Party-led coalition came to power in March.

Outlining the basic tenets of the country's security policy, Gilani said Pakistan's "defence is based on the strategy of minimum, essential and credible deterrence and that we shall not enter into any arms race".

Noting that Pakistan is "located in a geo-strategically important but a turbulent region", he said, "We live and operate in a volatile environment. We cannot, therefore, afford to remain oblivious to our defence needs.

"I wish to categorically state that Pakistan stands for peace with honour. We shall continue to strive for it without compromising on our national interests," Gilani said. He also announced a new mode for presenting the country's defence budget in the National Assembly or lower house of parliament. Currently, the budget of the three services, ordnance factories and other defence establishments is presented as "a one line allocation".

"It is not approved separately but in a consolidated form for all defence services. After approval of the budget, ministry of defence apportions the allocation to the three services and other defence organisation," Gilani remarked.

"My government has now decided to present the defence budget estimate in a format reflecting the estimated expenditure under major 'heads' in the parliament. I am pleased to inform you that the ministry of defence and chief of army staff have fully endorsed the revised format of the defence services budget estimates," he said.

The PPP and its ally PML-N had earlier said that they would break from tradition to debate the defence budget in parliament.

 

[Tiki Tam Tam]

It does not in any way mean that India has to follow.

Pakistan, possibly having economic problems, has to cut on defence and concentrate the pie on other pressing requirement. And obviously, cloaking it as a peace move does go a long way.

And the situation is worse since the US may not keep refurbishing its defence needs.

If India is in an equal dire straits, it would do so on its own, without anyone's bidding because of its own compulsions.

Till the shoe pinches India, it will be business as usual since the pie has been well adjusted to cater for India's needs in all the sectors of its growth.

Planned growth seems to have paid its dividend well for India.

 

[Myth_buster_1]

Hell with these kind of politicians who resort to defence cut when they them self cant do $#@^ to prevent economy collapse.. Every thing was goin smooth for the pakistan economy until these looters decided to come back AND loot some more.
Bunch of idiots..

 

[blain2]

The defence budget is fine where its at (no need to hike it) because it takes into consideration the ongoing AFDP.

 

[BATMAN]

Planned growth seems to have paid its dividend well for India.

Correction:
9/11 seems to have paid its dividend well for India

 

[Khalsa]

Correction:
9/11 seems to have paid its dividend well for India

Please Explain!!!

 

[EagleEyes]

Good job done by the PPP. I hope the money goes in a proper use, not in the specific pockets.

 

[BATMAN]

Please Explain!!!

How do you know so much about india and how come you support india so much, where as you are a Canadian?

 

[Khalsa]

Originally I am from Eastern Punjab. I dont shy away from speaking against India if they do somthing inhuame. (Afzal Guru).

 

[Khalsa]

External debt, liabilities reach $46bn



Tuesday, June 10, 2008
By our correspondent

KARACHI: Country’s total external debt and liabilities have swelled to $45.926 billion till end of March 2008 as compared to $42.931 billion in the same period of year 2007.

Total foreign debt grew to $44.596 billion while total foreign exchange liabilities slightly went down to $1.33 billion which was recorded $1.342 billion on March 31, 2007.

Public and publicly guaranteed debt rose to $40.692 billion against $37.836 billion in the corresponding period of last year. Public debt increased to $40.479 billion including medium and long term debt for more than one year surged to $39.865 billion in which Paris Club grew to $14.527 billion which was witnessed at $13.430 billion on March 31, 2007.

Debt of multilateral agencies augmented to $21.378 billion from $19.768 billion in the same period of last fscal, while other bilateral debt increased to $1.113 billion from $999 million and military debt remained stagnant at $48 million whereas commercial loans and credits also stayed pegged at previous year’s $120 million. Debt acquired through euro/sukuk/global bonds remained unchanged at$2.650 billion.

Country’s short-term loans for the period of less than one year also rose to $614 million from $601 million of last year. Short term publicly guaranteed debt slightly came down to $213 million from $215 million.

In short term borrowing country has to return $142 million to multilateral agencies besides of $64 million to other bilateral countries, and $4 million as commercial loans and $3 million for Sandak Metal Bonds.

As of March 31, 2008 the private non-guaranteed debts for more than one year stood at $2.215 million, which was $2.122 million on corresponding period of last year. Private non-guaranteed bonds surged to $275 million from $250 million and loans obtained from IMF increased to $1.414 million against $1.381 million in the same period of pervious year.

Foreign exchange liabilities including payments to be made against specialUS dollar bonds, foreign currency bonds (NHA/NC), National Debt Retirement Program, Central bank Deposits, NBP/BOC deposits and other liabilities (SWAP) FEBCs/FCBCs/DBCs increased to $1.330 billion.


This could be one of the reason to slash the budget.

 

[Neo]

I learned from reliable source that defence budget will remain around 275 billion Rupees.

Since the rupee has lost 30% of its value this year against an economic growth of 5.9% the defence budget will be close to 2.9% of GDP instead of 3% (FY2007/08), no increase or decrease.

 

[mujahideen]

I think we should raise or lower the budget after looking at the ground realities. But what is even more important is keeping tabs on how the moneyis spent. Most of our money is looted or misspent.
As far as India is concerned, what they do with their budget is their internal matter, we have no say in the matter.

 

[Sam Dhanraj]

It does not in any way mean that India has to follow.

Pakistan, possibly having economic problems, has to cut on defence and concentrate the pie on other pressing requirement. And obviously, cloaking it as a peace move does go a long way.

And the situation is worse since the US may not keep refurbishing its defence needs.

If India is in an equal dire straits, it would do so on its own, without anyone's bidding because of its own compulsions.

Till the shoe pinches India, it will be business as usual since the pie has been well adjusted to cater for India's needs in all the sectors of its growth.

Planned growth seems to have paid its dividend well for India.

I dont think that Gilani sahib would hear a reciprocal announcement from New Delhi when it comes to Indian Defence Budget.
I agree to Salim Sir's viewpoint on the reasons for Pak Defence cut (If any cut in actual terms).

As Indian Defence Minister Quoted

Responding to the recent Pakistani announcement of a freeze in their defence budget and the cuts in the Chinese defece budget, Antony said India's defence spending was not matching the economic boom that the country had witnessed in the recent past.

"Our (India) defence budget is just 1.99 per cent of the GDP, which is one of the lowest in the world. The ideal situation would be 3 per cent of GDP, which is the global average," he added

TOI

Though I am sure that the hike in Indian defence budget would not be equal to Ideal figures as quoted by Mr Antony...I do expect some decent hike in defence budget...!!!

 

[Contrarian]

Though I am sure that the hike in Indian defence budget would not be equal to Ideal figures as quoted by Mr Antony...I do expect some decent hike in defence budget...!!!

The Crude is pinching us badly as well. Add to that the governments bonanza for farmers...Dont expect a hike.

 

[Always Neutral]

Approximately 80 per cent of the volume of exports of major
conventional weapons for the period 2003–2007 were accounted for by
the five largest suppliers—the USA, Russia, Germany, France and the
UK. Although these five suppliers are likely to continue to account
for an overwhelmingly large share of international arms transfers,
concerns were expressed in 2007
regarding the export prospects
for French and Russian major
conventional weapons.
Asia, Europe and the Middle East
continued to be the largest recipient
regions for the period 2003–2007.
The largest recipient countries
were China, India, the United
Arab Emirates (UAE), Greece
and South Korea. However, 2007
gave the first signs of a potentially
significant change among the
largest recipients, with decreased
deliveries to and orders by China.
The largest suppliers to Asia and the
Middle East will continue to engage
in intense competition for export
orders, with Libya and Saudi Arabia
likely to become large recipients
once again. SIPRI data show the volume


I doubt India can cut back as its committed to pay for the deals already done and which will take 5-7 years to materialise.

Regards