One of the cornerstones of traditional “anti-establishment” politics has been Pakistan’s defence budget. The most significant matter that is brought up normally is the allocation for the military is far too high at the expense of other sectors of the economy.
For this story, we will set aside the debate regarding how much should be allocated for military spending in a country like Pakistan. Instead, let’s look at a different factor: The yearly increase in the military budget. This year, in the federal budget proposal, the amount of money proposed under defence expenditure has been raised by 15% marking a Rs 280 billion increase in the budget. The defence services head of the expenditure has been allocated a total of Rs 2.128 trillion for the upcoming fiscal year. This means that the defence services alone now account for 12% of Pakistan’s federal expenditure. This expenditure, as a percentage of Pakistan’s GDP now stands at almost 2% of the GDP.
But the increase is not quite what it may seem. Despite the increase, the military has not been immune to inflationary pressures. The question is what has been the real value of the military budget over the last four financial years? Has it gone up as much as we think it has? How much inflation has hit the military in real terms? And what does the rising trend in the military budget signify?
To make a righteous comparison one first needs to understand what the military budget is, its different components, and how it is divided. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
