Real figure of defence budget : 675 Bn

[Neither Right Nor Wrong]

Isn't lowering rupee a demand of IMF

IMF does not want pakistan govt to artificially control Rs, they want to let the Rs depreciate.

For Pakistan had approached IMF for balance of payment crisis ie. because of trade deficit it was no longer able to pay for its imports.

As the Rs falls pakistan's exports will increase ,as goods produced in pakistan will become more competitive (cheaper) in international market.

And Imports will decrease as they will become more expensive (inflation) in Pakistan.

Hence it addresses the basic issue of trade deficit.

 

[Gin ka Pakistan]

Because of a balance of payment crisis and excessive borrowing from the SBP, the rupee was obviously going down. A worsening economy will most definitely imply a weakening currency except in very rare circumstances.

Shukat Aziz kept the rupee stable which translated into lower import bills resulting in better economy. Defense budget was frozen and oil import bill was constant.

 

[notsuperstitious]

Dollar has weaken against other currencies in the world but in Pakistan it was kept high , SBP kept on buying from Open market to keep its demand high.
Pakistan makes Payment to IMF in rupee so devalue rupee is their demand.

Dollar has actually not weakened against most currencies, atleast the ones that matter.

Secondly, devaluing rupee will make dollar even more expensive, no?

 

[Gin ka Pakistan]

Dollar has actually not weakened against most currencies, atleast the ones that matter.

Secondly, devaluing rupee will make dollar even more expensive, no?

Ok US 94 cent is to one Canadian $ now before 85 cent to a Canadian $.

Do you want me to give example of euro too . Some countries were even talking in selling oil in other currency then US $ because of it. even China was losing because of T Bills worth in US $

few month ago US $ and Canadian $ came to Parity . six years ago 65 cent US was equal to one Canadian $.

 

[notsuperstitious]

Rs 225 billion was also allocated for pension and under the head of the war on terror contingency.

most of this is re-imbused thru CSF, CISF funds provided by the US.

Since the gross amout is shown in the budget as expenditure, the reimbursement must be shown as income.

Do we know how much is that?

 

[notsuperstitious]

Ok US 94 cent is to one Canadian $ now before 85 cent to a Canadian $.

Do you want me to give example of euro too . Some countries were even talking in selling oil in other currency then US $ because of it. even China was losing because of T Bills worth in US $

few month ago US $ and Canadian $ came to Parity . six years ago 65 cent US was equal to one Canadian $.

Euro is at a 4 time low, but yes there have been lots of fluctuations and I was generally referring to a basket of currencies and it has not fallen drastically. anway off topic and your point about the PKR falling is correct thought the conclusion wrong.

 

[sparklingway]

Shukat Aziz kept the rupee stable which translated into lower import bills resulting in better economy.

I could not have witnessed a weaker and frankly pathetic argument. I will not grace it with any substantiative response.

Defense budget was frozen and oil import bill was constant.

It never "froze" rather decreased as a percentage of govt. spending, one of the main factors being that pensions were taken out of defence budget in 2003. AM has a valid point that India follows a similar strategy and perhaps we wanted a realistic comparison, but frankly we could have done that on paper as well. When no other ministry had gotten its pensionary expenditures excluded, it clearly meant that there was a dire need to show reduced defence burden and hence the move to take out pension from defence expenditure.

Oil import exploded in Jan '08 and doubled our oil import bill for the six-eight month period when it skyrocketed. It wasn't a government achievement that crude oil prices remained constant in the global market.

 

[Gin ka Pakistan]

Euro is at a 4 time low, but yes there have been lots of fluctuations and I was generally referring to a basket of currencies and it has not fallen drastically. anway off topic and your point about the PKR falling is valid.

Euro got hit by Greece bankruptcy

 

[Gin ka Pakistan]

I could not have witnessed a weaker and frankly pathetic argument. I will not grace it with any substantiative response.

[/IMG]

Grapes are sure

 

[hellofriends]

good spend more money on defence..it made u world most powerful country.

 

[alibaz]

Dollar has weaken against other currencies in the world but in Pakistan it was kept high , SBP kept on buying from Open market to keep its demand high.
Pakistan makes Payment to IMF in rupee so devalue rupee is their demand.

Sir we can't generalize it that dollar is falling. I got dollar converted at 1.4 to 1 euro in march and now it is something like 1.2. so dollar is getting stronger.

If SBP had kept on buying dollars then where are those.

 

[Hutchroy]

bring Rupee back to $75 level and cut some billions off.

I am sure you don't mean US$ = PR 1, but US$ 1 - PR 75

@ PR 75 Defence Budget PR 675 Billion = US$ 9.00 Billion

@ PR 85 Defence Budget PR 675 Billion = US$ 7.94 Billion

Take your Pick.

 

[M8R]

If you ask me 4.47% of GDP is not such a bad deal.

 

[ajpirzada]

to be honest we can defend this figure in many ways but its sad indeed. compare this to educational and health spending.

 

[Ras]

Not sure if the defense budget is too high considering that the Pakistan army is fighting almost a full fledged war but reading some of the posts here I understand the major waste if the no of cash being spent on the PSU's. I guess the situation is just like India's..any industry the govt touches is poison to that industry's growth.

Thankfully PM Singh is trying his best to get the govt out of most industries.