An increase in Pakistan's defense budget is often considered inevitable due to a complex interplay of internal and external factors: 1. Perceived Threat from India: * Historical Context: Pakistan and India have a long history of adversarial relations, including multiple wars and frequent border clasRead more
An increase in Pakistanโs defense budget is often considered inevitable due to a complex interplay of internal and external factors:
1. Perceived Threat from India:
* Historical Context: Pakistan and India have a long history of adversarial relations, including multiple wars and frequent border clashes. This historical animosity fosters a deep-seated โsecurity threatโ perception in Pakistanโs defense planning.
* Arms Race: The ongoing arms race with India necessitates Pakistan to continually modernize and upgrade its military capabilities to maintain a deterrent posture.
* Recent Tensions: Recent escalations in tensions, such as border incidents and alleged terror attacks, often lead to calls for increased defense spending to enhance preparedness and national security.
2. Internal Security Challenges:
* Terrorism and Insurgency: Pakistan faces significant internal threats from various militant and terrorist groups, particularly in regions like Balochistan and Khyber Pakhtunkhwa. Combating these threats requires substantial resources for counter-terrorism operations, intelligence gathering, and maintaining law and order.
* Sectarian Violence: Societal violence and sectarianism also contribute to the need for a strong internal security apparatus.
3. Geopolitical Environment and Strategic Alliances:
* Regional Instability: Pakistanโs location in a volatile region, bordering Afghanistan and Iran, adds to its security concerns. Regional instability and the presence of various non-state actors necessitate a robust defense.
* Strategic Alliances: While foreign military aid has historically helped Pakistanโs defense capabilities, it also influences its spending decisions and procurement needs.
4. Maintaining Deterrence:
* Nuclear Program: Pakistanโs nuclear program is a key component of its deterrence strategy against India. Maintaining and modernizing this program requires consistent financial investment.
* Conventional Forces: Beyond nuclear deterrence, Pakistan aims to maintain a credible conventional force to respond to various threats and ensure territorial integrity.
5. Domestic Political Dynamics:
* Influence of the Military: The military has historically played a significant role in Pakistanโs political landscape, and its influence often ensures that defense allocations remain a priority in national budgets.
* National Security Imperative: Political parties often find broad support for increasing defense spending, especially during times of heightened security threats, as it is framed as a matter of national survival and sovereignty.
6. Indigenous Defense Industry and Modernization:
* Self-Reliance: There is an ongoing effort to develop an indigenous defense industry to reduce reliance on foreign imports and enhance self-sufficiency in military hardware. This requires investment in research, development, and manufacturing capabilities.
* Technological Advancement: Keeping pace with technological advancements in warfare necessitates continuous investment in new weapons systems, surveillance, and defense technologies.
While Pakistanโs economy often struggles with debt and fiscal deficits, the perception of an existential threat and the need for national security often override economic constraints, making an increase in the defense budget an almost unavoidable aspect of its national policy.
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Based on the most recent information about Pakistan's budget (Fiscal Year 2025-26), here's what is expected to become cheaper, alongside what is expected to become more expensive: Expected to become cheaper: * Cigarettes and beverages: The budget has proposed a reduction in taxes on these items, whiRead more
Based on the most recent information about Pakistanโs budget (Fiscal Year 2025-26), hereโs what is expected to become cheaper, alongside what is expected to become more expensive:
See lessExpected to become cheaper:
* Cigarettes and beverages: The budget has proposed a reduction in taxes on these items, which could make them cheaper. This is a change from the old trend of increasing taxes on cigarettes every year.
* Dining out (with digital payments): In the previous budget (FY24), the tax rate for dining out through debit/credit cards, mobile wallets, or QR scanning was reduced from 15% to 5%. This makes dining out cheaper if digital payment methods are used.
* Solar energy products: The previous budget also announced an exemption on customs duty for raw materials used in the production of solar energy products (inverters, solar panels, and batteries). This was aimed at promoting renewable energy and reducing costs for consumers.
Expected to become more expensive:
* Snacks and sodas: The budget proposes excise duty on items like chips, biscuits, cold drinks, and ice cream.
* Frozen meat, sauces, and cooked meals: A 5% excise duty is also proposed on these items.
* Processed items: Excise duty is proposed on several processed items.
* E-commerce: An 18% sales tax is proposed on e-commerce.
* Local vehicles up to 850 cc: The General Sales Tax (GST) rate is proposed to be increased from 12.5% to 18%, which may make small vehicles more expensive.
* Imported solar panels: An 18% sales tax is proposed on imported solar panels to promote domestically manufactured ones.
Itโs important to note that the budget details are still being finalized, and the actual impact on prices may vary.