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Gilani “freezes” defence budget

ISLAMABAD: India was not named, but Prime Minister Yousuf Raza Gilani announced in the National Assembly on Monday that “as a measure” of Pakistan’s peaceful intentions towards its neighbours, his government had decided to “freeze” the defence budget, and expressed the hope that “our neighbour” would do the same.

In rupee-dollar terms, Mr. Gilani said, this would in effect reduce Pakistan’s defence budget.

“As a measure of our tangible display to seek peace with our neighbours, we have decided to freeze, actually reduce, the defence budget when seen in the context of inflation and the rupee-dollar parity. We hope to see a reciprocal gesture from our neighbour for the sake of peace and prosperity of the region,” Mr. Gilani said in a policy statement to the National Assembly, which is presently in its budget session.

Mr. Gilani did not name India once in his speech. The decision had been approved by the Defence Ministry and the Army chief, he said.

Mr. Gilani said Pakistan’s defence was based on the need for a “minimum, essential and credible deterrence” and while it was not in an arms race with anybody, it could not be oblivious to its defence needs either.

Pakistan’s defence budget was Rs. 275 billion in 2007. The new PPP-led government has been under pressure to cut the defence budget and to bring it before Parliament for discussion. Moreover, the country is in the midst of an acute economic crisis, with food and fuel prices having shot up in the three months that the new government has been in office.

The Prime Minister announced that instead of the usual one-liner on the defence budget, his government would present defence estimates under major “Heads”.

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