Mohsin Siddiqui (Chief Reporter)
The new defence budget comprises 11.28% of the total national budget, addressing high inflation rates and ongoing security concerns. A detailed examination reveals that the original allocation for the outgoing fiscal year was Rs1,809.5 billion, later revised to Rs1,859.3 billion.
It’s important to note that the defence budget excludes pensions, which have been separately allocated Rs662 billion. This represents a 13.6% increase from last year’s revised pension expenditure of Rs583 billion. Initially, pensions were budgeted at Rs563 billion, reflecting a significant 17.6% rise.
The budget does not itemize major defence-related procurements and strategic programs, including the nuclear weapons program. For defence administration, Rs6,781 million has been allocated, an increase from Rs5,312 million in the revised estimates of the outgoing year. The previous year’s budget had allocated Rs5,467 million for this purpose.
Defence services are budgeted at Rs2,122 billion, compared to Rs1,854 billion in the revised estimates of last year and Rs1,804 billion originally. This budget includes several key components:
Employee-Related Expenses: Rs815.2 billion allocated for salaries and allowances for troops in uniform and civilian employees. Operating Expenses: Rs513.3 billion for transport, petroleum, oil, lubricants (POL), rations, medical treatment, training, and more. Physical Assets: Rs548.6 billion for local purchases and the import of arms, ammunition, and related procurements. Civil Works: Rs244.9 billion for the maintenance of existing infrastructure and the construction of new buildings.
Additionally, Rs5,636 million has been allocated to the defence division under the PSDP, with Rs3,776 million allocated to the defence production division.
The International Monetary Fund (IMF), in its second and final review documents of the Stand-By Arrangement, projected Pakistan’s defence budget for the next fiscal year at Rs2,152 billion. This indicates a 19.29% increase over the Rs1,804 billion budgeted for the outgoing fiscal year.
