Pakistan is struggling with poverty. Inflation is at its record level and people do not have flour to eat. But during this also Pakistan has decided to increase its defense budget by six percent. Pakistan has taken this step to increase the salary of the armed forces and buy other necessary weapons. The Economic Coordination Committee (ECC) of the cabinet has decided to increase the amount of 80 billion rupees. In this, a supplementary grant of Rs 182 billion was approved.
The Defense Ministry had sought an additional defense budget of Rs 80 billion for the Jinnah Naval Base, Tarbat Naval Base and Multifunction Building at the headquarters. The ECC has decided to impose a 10 per cent regulatory duty on imports of petroleum products coming from China to prevent misuse of bilateral free trade agreements. This is because some oil companies used to bring their oil to Pakistan via China to avoid 10 percent tax.
80 billion rupees extra budget
Pakistan’s Finance Minister Miftah Ismail chaired the ECC meeting, which approved an additional 80 billion rupees supplemental budget for the armed forces. The Finance Ministry was of the view that the additional expenditure in the financial year 2021-22 would be less than Rs 80 billion. The National Assembly of Pakistan released a defense budget of 1373 billion rupees last year.
Pakistan heading towards economic crisis
Pakistan may be increasing its defense budget, but it seems to be moving towards an economic crisis. During the week ended May 27 in Pakistan, there has been a big fall in its foreign exchange reserves of about $ 366 million. Pakistan also does not have any special money left for importing goods from other countries. At the same time, petrol prices have been increased by Rs 60 in a week.