Pak govt unveils annual budget, increases defence allocation

Islamabad, June 9 (UNI) The Pakistan government today unveiled a 1.599 trillion rupee (approximately 26.3 billion dollars) federal budget for the year 2007-08 with an increased allocation of 275 billion rupees (4.53 billion dollars) for defence.

Presenting the budget in the National Assembly, the Deputy Minister for Finance, Omar Ayub Khan, said the government and the people would render whatever sacrifices possible to make the defence insurmountable.

The military budget is up by 25 billion rupees as compared to the outgoing fiscal year 2006-07.

The huge chunk of the budget goes for defence in sharp contrast to a meager allocation of just 16 billion rupees allocated for education sector in the new year, beginning July 1.

He said the defence budget was being increased to equip armed forces with the latest military equipment, declaring that nobody would be allowed to cast an ''evil'' eye on Pakistan.

Pakistani armed forces plan to induct latest equipment, including aircraft, helicopters, and warships over the next two years.

At least 22 pre-used F-16 multi-role fighter aircrafts are to join Pakistan air force fleet in the next 12 months followed by induction of 18 brand new Block-52 F-16s of C and D version.

The government has also approved a deal with Sweden for the purchase of six AWACS aircraft.

The PAF would also need money for the purchase of JF-17 (Thunder) aircraft over the next few years. Pakistan and China had jointly manufactured the jets. Two of them were inducted in the PAF in early March while remaining six were to join the fleet by end of this year.

Beijing would also sell four F-22P frigates to Pakistan along with a fleet of four state-of-the-art helicopters by 2013 with the first ship entering the service in 2008.

The ruling Pakistan Muslim League government, which presented its last budget months ahead of the parliamentary elections scheduled by end of this year or early 2008, termed the budgetary proposals as ''pro-poor, caring, relief and growth-oriented, investment friendly and incentives-laden.'' Omar Ayub, the grandson of a former military ruler Field Marshal Ayub Khan, however, conceded that it was a deficit budget and the government would have to generate 358 billion rupees to meet the deficit.

He proudly claimed that the growth rate of seven per cent achieved during the outgoing financial year was unprecedented in Pakistan's history with foreign exchange reserves touching record 15 billion dollars mark and a six billion foreign investment pouring in to the country.

This year's budget was announced amidst growing uncertainty in the wake of military ruler Pervez Musharraf's sacking of top judge Iftikhar Muhammad Chaudhry on March 9 which plunged the country into a judicial crisis.

UNI