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Pakistan Eyes Possible Defense Budget Increase

: Mar 17, 2014 - : 3:43 am

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Pakistan is examining a possible defense budget increase in light of a changing security and financial situation, but though new equipment is needed rising operational costs could soak up any increase, say analysts.

The Associated Press of Pakistan (APP) reported Finance Minister Ishaq Dar discussed the possibility of assisting the military’s development program with Chief of Army Staff Gen. Raheel Sharif during a meeting over the last weekend.

Just how much more money the armed forces can expect is uncertain despite some improvements in the economy. Sakib Sherani, an economic commentator and CEO of Islamabad-based economic consultancy firm, Macro Economic Insights, says the increase would not be much.

The “‘green shoots’ of a recovery in economic growth do appear to be sprouting, but it is fragile. Without fundamental, credible structural reform, the economy will not be able to stories a durable, lasting turnaround,” he said.

Analyst Haris Khan of the Pakistan Military Consortium think tank says finances have been tight for the military, even for operational needs, but external financing has given it some respite.

“All three branches have been working with respected procurement appropriations for their role in fighting terrorists. In general, Pak armed forces have been relying on Coalition Support Fund finances to fuel their war machinery in this regard,” he said.

Former Australian defense attache to Islamabad, Brian Cloughley, said helicopters would be a critical piece of equipment if the budget rises, but a move against the Pakistani Taliban (TTP) could see the money diverted.

“Helicopters, almost certainly, but much is needed for operating costs, which keep increasing. If they go into North Waziristan, even more troops are going to be needed” he said.

The government has been signaling a potential ground operation for this month against the TTP in North Waziristan since late January.

A possible deal for Chinese-built helicopters is speculated due to comments made by the president during a press conference last week.

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