Defence budget: Navy pleads for fleet modernisation funds

Finance minister asks navy to go through the joint staff headquarters of the armed forces first


Shahbaz Rana March 31, 2015
In this file photo, Pakistan naval frigate Shamsher arrives at a military port before a maritime drill during the Western Pacific Naval Symposium in Qingdao, Shandong province, April 20, 2014. PHOTO: AFP

ISLAMABAD: As part of its fleet modernisation plan, Pakistan Navy is seeking Rs15 billion over the next three years for its needs, a request that the acting naval chief made directly to Finance Minister Ishaq Dar.

Acting Chief of Naval Staff, Vice Admiral Khan Hasham Bin Siddique met the minister on Monday at the finance ministry, seeking funds to meet the navy’s more urgent needs, as well as future requirements of the naval forces, according to a handout issued by the ministry. The acting naval chief sought over Rs2 billion for meeting immediate requirements to settle bills due to China and another Rs15 billion for future needs, said an official after the meeting.

The meeting indicates that the Pakistan Navy wants to go for major defence procurements over the next few years, aimed at modernising its fleet. As the smallest of Pakistan’s three armed services, the navy usually gets only one-tenth of the total stated defence budget, with the bulk going to the army. The direct meeting with the finance minister suggests that the navy is keen to get its needs fulfilled.

For his part, the finance minister was supportive of the idea of fleet modernisation, but asked the navy to go through the joint staff headquarters of the armed forces. “The minister directed that a complete picture of Armed Forces Development Plan (AFDP) be presented in consultation with the Joint Staff Head Quarters to assess the budgetary requirements over the next three years,” said the official handout.

However, Dar was also quoted as saying: “If there is a need, the government will not hesitate to help the navy through budgetary support.”

The federal government separately provides funds for the AFDP. This funding is over and above the traditional defense budget and usually ranges between Rs165 billion to Rs200 billion. For the current fiscal year, the government has allocated Rs165 billion under the heading “contingent liabilities”, but is meant for meeting the development needs of the military.

Pakistan has always engaged in an arithmetically futile attempt to peg its defence budget to a fixed ratio with the Indian defence budget. Historically, the ratio has been three to one, but after the recent increases in Indian defence spending, the ratio has dropped to 4.5 to one, said former finance minister Hafeez Pasha.

India has a population that is six times larger than Pakistan. Its economy is nine times larger ($2 trillion vs $230 billion) than Pakistan and growing at a much faster rate. As a result, it is mathematically impossible for Pakistan to keep pace with Indian defence spending.

The Naval chief also requested the finance minister to take up the financing issue of different defence related equipment. The minister asked the naval chief to send the working paper to the Economic Affairs Division which has been directed to negotiate with Chinese authorities on a variety of issues, said the finance ministry.

Published in The Express Tribune, March 31st, 2015. 

COMMENTS (1)

disgust | 8 years ago | Reply The Munshi does not know the functioning of Joint Staff Headquarters. They have nothing to do with it. Naval HQ must send a suitable snub to this Munshi.
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