'Bhutto had asked PAF to be ready to attack India's N-sites'

[ashwin]

Ashwin - Pakistani expenditure on defence as a proportion of GDP and as a proportion of the total budget is pretty close to the Indian expenditure.

About 4.6 % of GDP and around 12% of total budget for 2009 - there are a few threads that give the breakdown and you can also google the Pakistani budget and figure it out from there.

Military expenses in that range are nowhere near unaffordable or extravagant.

While Pakistan's economy was growing (till 2008) you saw greater defence acquisitions (F-16's, Saab AEW&C, Frigates, sub tenders etc.). Now while the economy is slower, there have been far fewer big ticket acquisitions.

Pakistani planners are aware of the need to balance military deterrence with investment in the economic and social sectors. That is one reason why, during the 'lost decade' of the nineties, there was hardly any major military AF acquisition, even though the PAF and desperately needed them. Instead you saw a lot of development in on the unconventional side, with ballistic and cruise missiles, development of the ASFC etc. A nuclear deterrent to somewhat make up for the lack of investment in the conventional aspect.

That was what I was trying to say. When we talk about the same in numerals that is in the actual amount, the amount comes out be less then that of India in terms of actual dollars. But there is always a pressure from within to keep at par with the Indians. At the other end when Pakistan is receiving aid from other nations India can very well play the card of extravagant defense expenses and the money being used for weapons. So ultimately the pressure mounts up on Pakistan from internal and external sides and at the end of the day none of them are satisfied.

 

[AgNoStiC MuSliM]

You give your money as aid and see these guys are using that money for weapons and missiles.

http://www.defence.pk/forums/economy-development/30821-where-did-10-billion-us-aid-pakistan-go.html

 

[AgNoStiC MuSliM]

That was what I was trying to say. When we talk about the same in numerals that is in the actual amount, the amount comes out be less then that of India in terms of actual dollars.But there is always a pressure from within to keep at par with the Indians. At the other end when Pakistan is receiving aid from other nations India can very well play the card of extravagant defense expenses and the money being used for weapons. So ultimately the pressure mounts up on Pakistan from internal and external sides and at the end of the day none of them are satisfied.

Yes - but Pakistani military and civilian leaders acknowledged a long time ago that they would not be able to match Indian acquisitions dollar for dollar, and primarily invest enough to maintain a credible deterrent.

The most crucial aspect of the 'aid' Pakistan needed was the IMF and World Bank loan approvals, which it has already obtained. The promised billions in aid would be more along the lines of giving the Pakistani economy an additional boost (and see Shaukat Tarin's statement on how only about half of the aid actually will have an impact given the disbursement methodology by Western nations), and not keeping it afloat.

Pakistan has also anticipated a possible failure to follow up on the aid committed, and has therefore applied for an additional 4 billion IMF loan.

Finally, whether India protests or not, the US administration seems to have made a decision to utilize aid/reimbursements to Pakistan as a means of trying to get Pakistani cooperation. So long as the US needs that cooperation and Pakistan wants the aid, the two countries will work out compromises.

 

[ashwin]

http://www.defence.pk/forums/economy-development/30821-where-did-10-billion-us-aid-pakistan-go.html

Yes that is a very good answer. And i was unaware of it. thanks for the same. It would be really benificial if it is getting implemented in actual figures. And i believe it would be....

But one more question which just came to my mind was when the Americans leave do the Pakistan has a game plan like from where it is gonna generate these extra dollars. I mean to say if you have money you have expenses being very simple. So ones the aid is over what is the plan on the side of Pakistan how it is going to fulfill the deficiet amount.. (no offenses but seriously I want to know about the plan B for running the show)

On the lighter side as if I was to be the part of kind of economic warfare I would have tried to prove this report wrong in the international community.... just kidding. don't take serious.

 

[AgNoStiC MuSliM]

But one more question which just came to my mind was when the Americans leave do the Pakistan has a game plan like from where it is gonna generate these extra dollars. I mean to say if you have money you have expenses being very simple. So ones the aid is over what is the plan on the side of Pakistan how it is going to fulfill the deficiet amount.. (no offenses but seriously I want to know about the plan B for running the show)

Hopefully the economy will get back to decent growth and that will cover any expenses. In addition, if the Taliban insurgency in Pakistan is largely under control at that point, then that is money we won't be spending and therefore won't need aid for.

Remember that for all the talk about 'aid', Pakistan has lost many times more because of the violence and insurgency in FATA and NWFP brought about by the US invasion.

So if anything, with a US withdrawal and an anticipated slowdown in the insurgency, Pakistan will in fact be ahead economically.

 

[sadiqams]

At present it is India which is outspending on defence than all in her neigbourhood except china.

 

[hack]

Ashwin - Pakistani expenditure on defence as a proportion of GDP and as a proportion of the total budget is pretty close to the Indian expenditure.

About 4.6 % of GDP and around 12% of total budget for 2009 - there are a few threads that give the breakdown and you can also google the Pakistani budget and figure it out from there.

Military expenses in that range are nowhere near unaffordable or extravagant.

While Pakistan's economy was growing (till 2008) you saw greater defence acquisitions (F-16's, Saab AEW&C, Frigates, sub tenders etc.). Now while the economy is slower, there have been far fewer big ticket acquisitions.

Pakistani planners are aware of the need to balance military deterrence with investment in the economic and social sectors. That is one reason why, during the 'lost decade' of the nineties, there was hardly any major military AF acquisition, even though the PAF and desperately needed them. Instead you saw a lot of development in on the unconventional side, with ballistic and cruise missiles, development of the ASFC etc. A nuclear deterrent to somewhat make up for the lack of investment in the conventional aspect.

Isn't it still more than the Indian defense spending which IIRC is around 2.75%? I don't see how people can complain about Indian defense spending when as a percentage of GDP it is less that their own country's?

 

[hack]

At present it is India which is outspending on defence than all in her neigbourhood except china.

As a percentage of GDP her defense spending is the least.