Pakistan has increased defence spending by more than 9 percent to Rs 275 billion for the next fiscal, as compared to Rs 252 billion in the out going financial year. The amount is 3.13 percent of the country''s GDP. The defence spending is higher than the spending on education and health.
"Impregnable defence is indispensable for a nation which wants to live with honour and dignity," Minister of State for Finance Omar Ayub Khan said in his budget speech to the National Assembly on Saturday evening. "Pakistan is a nuclear power, if any one looks at us with evil intention, we will respond with full force."
Though Indian defence budget is more than five times higher than that of Pakistan in size, yet its ratio to GDP (2.1 percent) is much lower. But relations have started improving since they launched a peace process in early 2004.
Despite the thaw in ties, the nuclear-armed South Asian rivals have continued to focus on their military build-up. Omar Ayub said peace could only be achieved by making defences invincible.
The construction of a new army headquarters in the federal capital, Islamabad, is another point military''s bitter opponents capitalise on for criticising high defence spending.
Some four years ago, the government decided to pay pensions of retired armed forces personnel from the civilian budget, a tricky move that drew a barrage of criticism.
The planned defence spending is in addition to military aid Pakistan is getting from the United States for its role as a front-line state in the war against terrorism. In the past six years, Pakistan has received an estimated $10 billion of assistance from Washington, much of it in the form of military aid.