Pakistan raised its defence budget for fiscal year 2011-12 to Rs 495 billion on Friday, an increase of around 12 percent from this financial year’s defence allocation. Official budget documents presented in parliament stated that defence spending would increase to Rs 495 billion for 2011-12, compared to Rs 442 billion in the current financial year, which will end on June 30.
The defence budget was, however, revised to around Rs 444 billion during the current fiscal year, registering an increase of over Rs 2 billion. Earlier, some media reports had suggested that the military and the Defence Ministry had sought allocations of more than Rs 500 billion, but the figure was decreased by the Finance Ministry owing to the grave financial crisis currently gripping the country.
Unveiling the annual budget in the National Assembly, the finance minister said: “We stand by our valiant men, who are laying down their lives to safeguard our country. We are in a state of war.” He said that, “the country has constantly been suffering because of the existing security situation but the government was determined to improve the economy and provide security to the people.” The defence budget is never debated in parliament and is always assumed to be a given during the presentation of the annual financial bill.
The defence budget also does not include the pensions of retired military personnel. In the past, defence budgets were frequently limited to one line. However, over the last few years that one line been expanded to three, but no further details are provided. In the budget for the next financial year, the government also earmarked Rs 1.454 billion under its Public Sector Development Programme for ongoing schemes of the Defence Production Division for 2011-12.
According to budget documents, Rs 1.089 billion was allocated to the Public Sector Development Programme (PSDP) for installation of ship lift and transfer systems, associated machinery, equipment to provide docking and repair facilities for surface ships, submarines and commercial vessels of up to 4,000 tonnes. Moreover, Rs 365.3 million was also allocated to civil works to upgrade the Karachi Shipyard and Engineering Works.
An allocation of Rs 22 billion has also been made to the Pakistan Atomic Energy Commission under the PSDP allocations.
