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WE PAKISTANIS WILL LOVE THIS CONSPIRACY THEORY

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This sounds pretty reasonable. I read somewhere this figure does not include the pensions and equipment purchase (this would be strange).

Any idea what the % would be if these factors are taken into account.

Vinod,

On equipment purchases:
Of the total Rs. 296 billion, Rs. 294.9 billion has been allocated to military defence and Rs. 1.17 billion to defence administration.

Of the military defence allocation, Rs. 99 billion will be spent on personnel related expenses. Operating expenses have been fixed at Rs. 82.84 billion and the cost of physical assets Rs. 87.63 billion. The army will spend Rs. 25.73 billion on civil works.
I am not certain, but I imagine the 'cost of physical assets' would include equipment purchases.

Military pensions are Rs. 40 billion, and not included in the defence budget. Not sure if keeping pensions separate from the Military budget is unprecedented - from what I understand, India does not include defence production expenditures in her defence budget.
The defence budget this year constitutes 14.7 per cent of the total budget outlay of Rs. 2010 billion, a decrease, though marginal, from last year’s 17. 1 per cent. Over the last four years, some military spending, such as the allocation for the Rangers, an elite paramilitary, and the estimated Rs. 40 billion ex-servicemen pension bill, are “masked” as civilian expenditure. That practice continued this year too.

Both quotes from: The Hindu : Opinion / News Analysis : Pakistan: debate on defence spending
 
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Tell the Indians not only no, but HELL no. Make a big deal about it. Push the envelope even.

Here's why- most of those targets have likely gone deep. As such they're scared. Reassure them. Reassure your public that Pakistan's institutional elites haven't folded.

THEN, when the dust has settled, maybe even six months from now...nail em'. Do so because it's the right thing to do. Do so because now you've bought the political manuever room. Most of all, do so because now the LeT targets have started to ooze back to the surface.

If need be, go back-channel with the Indians and ask for help in the charade while explaining the plan.

I could be wrong but, were I LeT leadership, I'd be WAAAY underground by now. Unless you can nab these guys tomorrow, you likely can't, right now, nab them at all.

Remember, LeT can't hide forever either. They've an audience that must be periodically played to. Can't do that when in deep cover.

S-2, your plan is very well thought of and doable. The only problem that I see is there is a history of mistrust between both side. A perfect example is Kargil, where one side was signing a peace deal, and other was planning to control kargil sector.

And also to tell India "Hell NO" is also not very prudent at this juncture. This is not a new news at all. Pakistan did have ample time to take care of this rogue cells, not because of the mumbai incedent, but from The Parliment incedent. It does clearly show that from Parliment incedent how much Pakistan has really done, and they have resurfaced after that, Why was nothing done at that time. The simple answer is, they are not motivated to do so. Which i believe is what the India gov't is feeling.
 
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