Pak rules out possibility of slashing its military budget

Islamabad, Oct 25 (PTI) Pakistan has ruled out any major cut in its military spending in the face of an International Monetary Fund (I.M.F.) proposal for a 30 percent reduction in the defence budget if it opts to avail of financial assistance from the global institution, saying it would not be possible.

Defence Minister Chaudhry Ahmad Mukhtar has said there
could not be any major cut in the budget for the defence
sector, which is already facing a financial crunch because of
the devaluation of the Pakistani rupee against the US dollar.

Pakistan is yet to apply for the I.M.F. bailout package
which would be the last option for the government to avail,
Mukhtar told The News daily.

Asked about the I.M.F.'s reported condition of a 30
percent reduction in the defence budget over the next four
years, Mukhtar said he did not think such a major slashing in
military spending would be possible.

The defence forces are currently facing financial
constraints because of the massive devaluation of the rupee
against the dollar.

Mukhtar also termed the I.M.F.'s reported condition as
"mere hearsay" and insisted that Pakistan had not even applied
for the Fund's assistance. The government will knock on the
doors of the I.M.F. once all other options are exhausted, he
said.

For the current fiscal year, Pakistan had increased
defence spending by nearly seven percent to Rs 296.07 billion.
In the fiscal year that ended on June 30, Pakistan spent Rs
277.26 billion on defence. However, Prime Minister Yousuf Raza
Gilani has admitted that the defence budget had gone down in
because of inflation and rise in the value of the dollar.

When the Rs 296.07 billion defence budget was presented
in June, it was equivalent to almost USD 4.4 billion. However,
the defence budget in dollar terms is currently worth about
USD 3.6 billion. PTI