The budget 2018-19 increased defence expenditure by 10 percent when compared with the revised estimates and 20 percent when compared with the 2017-18 budget allocation. The allocation for next fiscal year is Rs 1.1 trillion (against the budgeted Rs 920.1 billion in 2017-18 which was revised upward to Rs 999.2 billion) with the bulk of the increase earmarked for consolidating fencing along the Pak Afghan border, ongoing operations in the anti terror threats from India and Afghanistan, and the cessation of the Coalition Support Fund by the United States government.
The 2017-18 budget with an estimated outlay of over Rs 5 trillion, envisages 20 per cent for Defence Affairs and Services. The defense budget allocates Rs 422.9 billion for employees-related expenses, Rs 253.5 billion for operating expenses and Rs 282.3 billion for local purchases and import of arms and ammunition.
The total defence allocation does not include Rs 260 billion for (i) pensions of military personnel and (ii) a separate allocation for security-related expenses.
Defence Ministry has received Rs 38 billion as grants so far which was allocated for (i) fencing and lighting along Pakistan-Afghanistan border at a cost of Rs 18 billion, (ii) raising special security division at a cost of Rs 10 billion, (iii) Intelligence services duty allowance at a cost of Rs 5 billion, (iv) capacity building programs for Pakistan Army and Pakistan Navy at a cost of 3.5 billion, (v) welfare of troops deployed along Line of Control at a cost of Rs 1 billion, (vi) Expansion of junior Naval academy Ormara at a cost of Rs 0.5 billion.
Military officials defended the increase in the budgeted allocation by insisting that the military''s expenses have increased due to the war on terror and border fencing along Pakistan- Afghanistan border. Comparing Pakistan''s defense budget with India''s officials said India allocated Rs 2.95 trillion in FY 2018-19 against last year''s Rs 2.74 trillion making it one of the leading defence spenders in the world.