Pakistani finance minister promises
further increase in defence budget
Pakistani Finance Minister Ishaq Dar today said the government would increase the military budget further if the need arose.
"God forbid if there is any extra requirement. But we will not be stingy," he said, explaining the national budget for the new financial year beginning July 1 at a press conference in Islamabad.
Dar was asked whether the $2.73 billion allocated for defence would be sufficient in view of the escalating armed confrontation with India over Kargil.
This figure represents an increase of 11 per cent over last year's military budget, but a decrease of half a point in terms of percentage of the total size of the national budget.
Defence will consume 22 per cent of the total $12.5 billion national budget for fiscal 1999-2000. Another 45 per cent, or $5.5 billion, will go to servicing the national debt.
Pakistan's economy suffered badly when the United States and other donors imposed sanctions on the country last year for carrying out nuclear tests in rivalry with India.
The country is still struggling to recover from the effects of the sanctions and the international recession.
The military confrontation with India has heightened in recent weeks, increasing fears of a fourth war between the neighbours.
DPA
The Kargil Crisis
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