{"id":32452,"date":"2022-07-08T20:37:55","date_gmt":"2022-07-08T20:37:55","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2022\/07\/08\/pakistan-slashes-military-modernization-fund-by-20\/"},"modified":"2026-08-07T22:38:58","modified_gmt":"2026-08-07T22:38:58","slug":"pakistan-slashes-military-modernization-fund-by-20","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/asia-pacific\/2022\/07\/08\/pakistan-slashes-military-modernization-fund-by-20\/","title":{"rendered":"Pakistan slashes military modernization fund by 20%"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ISLAMABAD \u2014 Pakistan\u2019s military modernization it taking a hit, with the government slashing the budget for the Armed Forces Development Program by 72 billion rupees (U.S. $346 million) \u2014 a decrease of about 20%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The move helps meet a demand by the International Monetary Fund that the country achieve a primary budget surplus of 153 billion rupees, or 0.2% of the national output for the new financial year in order to revive an IMF bailout package.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government allocated 363 billion rupees for the AFDP modernization effort when it <a href=\"https:\/\/www.defensenews.com\/global\/asia-pacific\/2022\/06\/10\/pakistan-boosts-defense-budget-by-nearly-6\/\" target=\"_blank\">presented the fiscal 2022-2023 budget on June 10<\/a>. The revised AFDP figure \u2014 291 billion rupees \u2014 was made public by the Finance Ministry after the National Assembly approved the budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Analyst and former Australian defense attache to Islamabad, Brian Cloughley, believes the current economic crisis has left Pakistan with no room to maneuver.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe IMF had to be strict, and one obvious and not unwelcome avenue for [Prime Minister] Shehbaz Sharif is to reduce the defense allocation, although the development program appears to be the only specific target sector,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among other adjustments to the FY22-23 federal budget, the defense fund will now receive an additional 41 billion rupees; operationally speaking, this could help the military as it faces economic inflation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This the second year the AFDP budget was cut in response to an IMF demand. The FY21-22 budget was cut from 340 billion rupees to 270 rupees. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defense News asked the Ministry of Defence Production, which handles defense equipment development and procurement, how the latest funding decrease would affect AFDP, but the ministry did not respond by press time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt is unlikely that this will have a drastic impact on Pakistan\u2019s overall defense preparedness, and it certainly will not affect nuclear weapons,\u201d Cloughley said. \u201cThere will be visible and publicized shelving of some programs, and no doubt military staffs are working hard to determine and recommend action in areas that will have minimal effects on strategic plans.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defense economics analyst Fida Muhammad Khan of the Pakistan Institute of Development Economics think tank, thinks the Air Force\u2019s modernization plans could be vulnerable, while the larger Army wields enough influence to escape major damage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe Air Force has to stay up to date, fleets need to be battle-ready, and that has a high price,\u201d he said. \u201cThese cuts will impact the <a href=\"https:\/\/www.defensenews.com\/air\/2022\/06\/24\/having-visited-pakistan-and-china-is-argentina-ready-to-buy-the-jf-17-jet\/\" target=\"_blank\">JF-17 [fighter jet] program<\/a>, [Pakistan Aeronautical Complex] projects and many more sophisticated weapon programs.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMaintaining one jet requires more resources than equipping infantrymen,\u201d he added, noting that modern aerial combat is essentially \u201cfought beyond visual range\u201d and therefore expensive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of targeting the AFDP fund, he said, the government should after \u201crevisisted\u201d its Public Sector Development Program, meant to encourage private investment by promoting skills among the labor force and improving infrastructure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With what\u2019s essentially a tax break on high-end tobacco products, done by raising the tax rate band, the government is set to lose out on billions of rupees that were expected to boost revenue from the industry \u2014 from 150 billion rupees to 225 billion rupees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nevertheless, Khan said, the military\u2019s needs will be met.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere is no question or doubt about that. So this is a cut that can be tolerated for once.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The move helps meet a demand by the International Monetary Fund that the country achieve a primary budget surplus of 153 billion rupees, or 0.2% of the national output for the new financial year in order to revive an IMF bailout package.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":45,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[45,160,11,36],"tags":[],"coauthors":[3413],"class_list":["post-32452","post","type-post","status-publish","format-standard","hentry","category-asia-pacific","category-daily-news-roundup","category-global","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"OSQJFIBCNZFZHGRWOQWPQP2PX4","arc_canonical_url":"\/global\/asia-pacific\/2022\/07\/08\/pakistan-slashes-military-modernization-fund-by-20\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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