• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Friday, March 24, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

Pakistan’s budget: In US dollar terms, Pakistan’s defence budget reduced almost 25 percent

Amit Agrahari by Amit Agrahari
June 12, 2019
in Geopolitics, Indian Subcontinent
Reading Time: 3 mins read
0
Pakistan’s budget: In US dollar terms, Pakistan’s defence budget reduced almost 25 percent

(PC: EA WorldView)

771
VIEWS
Share on FacebookShare on Twitter

It’s official – Pakistan Armed Forces has ultimately succumbed to the pressure of International Monetary Fund (IMF), the global lender which awarded bailout package of 6 billion dollars to the debt-ridden country. The guiding hand of IMF is visible on the budget of Pakistan which was presented yesterday. The debt-ridden country plans to increase the total revenue by 30 percent to 5.5 trillion rupees (Pakistani) or 36.5 billion dollars to finance 7 trillion rupees expenditure.

 

Also Read

Falklands Islands dispute: Argentina ramps up its defense against imperialist Britain

USA Smartly Plants a Terrorist in Belize

The Islamic country follows July-June fiscal year model and therefore next financial year would start by July first this year. The budget of Pakistan in Indian rupees in 3.2 lakh crore rupees which is less than the budget of two Indian states – Uttar Pradesh and Maharashtra. This means the total public expenditure of Uttar Pradesh (4.28 lakh crore rupees) and Maharashtra (3.67 lakh crore rupees) is more than that of Pakistan.

Less than 1 percent people (2 million out of 210 million population) in Pakistan pay income tax and the government plans to increase the tax base in the next financial year. The fiscal deficit target of the debt-ridden Pakistani government is around 7.2 percent of GDP or almost half of the total expenditure. Out of 7 lakh crore rupees gross expenditure, 3.1 lakh crore is being financed through the deficit.

The GDP growth of the country has been estimated at 2.4 percent compared project growth of 6.2 percent last year. This is the lowest GDP growth of the Islamic nation in the last decade, even during the global financial crisis in 2009-10 when the country grew at 2.6 percent.

The most interesting development in budgeted expenditure was the defence budget which got only 520 crore rupees increase this year. The defence budget was increased from 1.1 lakh crore rupees to 1.15 lakh crore rupees. However, given the fact that currency of Pakistan has been devalued from 115 rupees per dollar to 151 rupees per dollar in the last one year and inflation has been near double digit, the effective Pakistan defence budget in US dollar terms would be at least a quarter low compared to last financial year.

More than half (4 lakh crore rupees) of Pakistan’s budget is spent on defence and debt servicing. In the next financial year, Pakistan would spend 2.9 lakh crore rupees or 40 percent of the total expenditure on interest payments.

To cut the expenditure, the government reduced development expenditure from 1.15 lakh crore rupees to 9.49 lakh crore rupees. The interesting fact is that the defence budget of India is almost equal to the budget of Pakistan. The total budget of Pakistan for the year 2018-19 was 7 lakh crore Pakistani rupees or 3.2 lakh crore in Indian rupees while the defence budget of India is almost 3 lakh crore Indian rupees.

Despite all the rants of Pakistan armed forces, the fact is that Pakistan does not have financial resources to compete with India. Pakistan is a poor country, failed country and ruled by a few elite families who control the resources and therefore the economy is still stuck in ‘feudal age’. Its defence budget is 1.15 lakh crore Pakistani rupees or 0.52 lakh crore Indian rupees which is one-sixth of the Indian defence budget.

The total debt of Pakistan government is around 100 billion dollars which is 35 percent of the country’s GDP in 2018-19. China alone accounts for one-fifth of Pakistan’s total debt as it provides soft loans for China Pakistan Economic Corridor (CPEC). 

IMF has demanded reform in tax structure, cut is burgeoning defence budget, increase in the tax base, lowering the taxation limit, ending tax concessions on businesses, and market-oriented exchange rate. As the debt-ridden Islamic country has kneeled on the defence cut and free-floating exchange rate, it is expected that other reforms would be implemented very soon.

Tags: Pakistan
Share146TweetSend
Previous Post

India’s vote for Israel in UN is a clear message to Islamic countries

Next Post

BBC report highlights the conditions of Muslims in Chinese detention camps

Also Read

23 Nations of NATO misses the ‘2%’ Target!

23 Nations of NATO misses the ‘2%’ Target!

March 24, 2023
Hugo Chavez is still unifying Latin American nations

Hugo Chavez is still unifying Latin American nations

March 24, 2023
Weah and the US: A Love Story in Liberian Elections

Weah and the US: A Love Story in Liberian Elections

March 24, 2023
Estonia’s Cunning Strategy to steal EU and NATO’s top post

Estonia’s Cunning Strategy to steal EU and NATO’s top post

March 24, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
Africa kicks dollar to the curb

Africa kicks dollar to the curb

March 14, 2023
The mysterious death of Shermans has Justin Trudeau written all over it

The mysterious death of Shermans has Justin Trudeau written all over it

March 14, 2023
A ‘unified’ Romania is about to take down NATO!

A ‘unified’ Romania is about to take down NATO!

March 18, 2023
Justin Trudeau killed Michel Trudeau for Sophie

Justin Trudeau killed Michel Trudeau for Sophie

March 22, 2023
Did Ukraine use innocent civilians as human shield against Russia in the name of evacuation?

Did Ukraine use innocent civilians as human shield against Russia in the name of evacuation?

May 9, 2022
When dumb Chile meets dumber Ukraine

When dumb Chile meets dumber Ukraine

March 24, 2023
Brazil’s invitation to Uruguay and Paraguay for G20 is ground breaking

Brazil’s invitation to Uruguay and Paraguay for G20 is ground breaking

March 24, 2023
Paraguay rejects UK’s attempt to make it a terrorist haven

Paraguay rejects UK’s attempt to make it a terrorist haven

March 24, 2023
Trudeau just passed a law that could eradicate Canadian economy entirely

Trudeau just passed a law that could eradicate Canadian economy entirely

March 24, 2023
23 Nations of NATO misses the ‘2%’ Target!

23 Nations of NATO misses the ‘2%’ Target!

March 24, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.