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IANS Analysis: Pakistan's military budget expansion amid economic uncertainty

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IANS Analysis: Pakistan's military budget expansion amid economic uncertainty

New Delhi, June 26 (IANS) Pakistani Finance Minister Muhammad Aurangzeb presented the country’s 2024-25 annual federal budget amidst economic uncertainty on June 12. With a total of PKR 18.99 trillion ($ 67.84 billion), the government emphasized several reform measures aimed at meeting International Monetary Fund (IMF) conditions ahead of seeking a new bailout package. While key spending areas saw minor adjustments reflecting IMF directives and economic realities, there was a notable rise in defence spending, potentially diluting efforts to revive the economy in a piecemeal fashion.

The federal government has proposed a substantial PKR 2.12 trillion allocation for the armed forces in the upcoming budget starting July 1. This represents a notable increase of 17.6 per cent from last year’s 15 per cent rise to PKR 1.80 trillion. This also marks the second-largest percentage hike in defence allocations, slightly below the 18 per cent increase during the 2017-18 fiscal year under the previous PML-N government led by Nawaz Sharif.

Despite accounting for 1.7 per cent of the GDP, consistent with the previous year, this figure has sparked debate, with some highlighting it as a sign of military austerity amidst economic challenges, while others argue it marks a significant overall increase of nearly 18 per cent in annual allocations.

The allocation of financial resources within the Pak armed forces reveals that the Pakistan Army receives 47.5 per cent, followed by 21.3 per cent for the Pakistan Air Force, and 10.8 per cent for the Pakistan Navy. Additionally, 20.3 per cent is allocated to Pakistan’s Inter-Services Intelligence (ISI) and associated organizations. This distribution underscores the significant influence of the Pak Army and its affiliated inter-services entities, which collectively control nearly 68 per cent of the financial resources. This allocation also reinforces the Army’s predominant role within the military establishment and its broader impact on government affairs.

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However, the actual allocation to the armed forces exceeds what is officially reported, as certain expenditures are categorized under different budget headings at the insistence of the military establishment, underscoring its significant sway over government decisions. This distinction is evident in how expenses for current servicemen, including salaries and welfare allowances totalling PKR 827 billion (39 per cent of the defence allocation), are included in the defence budget. Meanwhile, financial provisions for pension payments to retired servicemen are sourced from the general national budget rather than the defence allocation. Overall, defence spending surpasses 15 per cent of Pakistan’s total annual budget.

Consequently, Pakistan’s government allocated an additional PKR 662 billion from its current expenditure to cover pension and welfare needs for ex-servicemen. This amount, equivalent to nearly 31 per cent of the annual defence allocation, is not formally included in the armed forces’ budget. This approach may be intentional to obscure the true scope of defence spending and avoid public scrutiny. Combined, expenses for both current and former servicemen total PKR 1,489 billion from the state treasury.

This situation prompts inquiries into the military’s significant influence over Pakistan’s financial resources and, consequently, its influence over daily governance. The military leadership’s demand for government funding is striking, especially considering the extensive economic interests across various sectors maintained by all three branches of the armed forces, led by the Army. Pakistan’s armed forces manage a diverse portfolio of multi-billion-dollar economic enterprises, spanning construction, manufacturing, real estate, telecommunications, shopping complexes, and other sectors.

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Various estimates indicate that Pakistan’s military conglomerate, encompassing entities like the Fauji Foundation, Shaheen Foundation, Bahria Foundation, Army Welfare Trust (Askari group), and Defence Housing Authority (DHA), generates an annual revenue of $26.5 billion as of 2023. According to the Pakistan government’s Senate submission, the Fauji Foundation owns diverse entities such as Askari Bank, Foundation Gas, Seed Multiplication Farm, Fauji Fertilizer, Fauji Cement, Fauji Power, Foundation Securities, Fauji Meat, Fauji Foods, and Overseas Employment Services, along with numerous shopping complexes nationwide.

Despite Pakistan’s economic challenges in recent years, these military enterprises have experienced significant growth. For instance, the assets of the Fauji Foundation alone reportedly surged by 78 per cent between 2015 and 2017, as per Bloomberg.

Likewise, the Shaheen Foundation oversees 21 projects, encompassing FM 100 radio, Shaheen Airport Services, SAPS Aviation College, Shaheen Aerotraders, Shaheen Knitwear, Shaheen Medical Services, Shaheen Insurance, Hawk Advertising, and two shopping complexes in Karachi and Lahore.

Meanwhile, the Bahria Foundation manages eighteen enterprises across Pakistan, including the Bahria Transshipment Hub, Bahria Enterprise Systems and Technologies, Bahria Dredging Company, Maritime Technical & Support Services, Bahria Maritime Services, Bahria Travels, Bahria Pharmacy, Al-Falah Trading Agency, Bahria Filling Stations, and Sino-Pak Refinery.

Additionally, the Army Welfare Trust (AWT), managed by the Pakistan Army as the Askari group, oversees several business ventures such as Askari Insurance, Askari Aviation, Askari Airport Services, Askari Travels, Mobil Pakistan, AWT Investments, Askari Enterprises, Army Welfare Sugar Mills, Askari Guards, Askari Woolen Mills, Askari Shoes, Askari Fuels, and Askari Real Estate. Moreover, the Defence Housing Authority (DHA) has developed eleven residential estates in major Pakistani cities including Islamabad, Lahore, Karachi, Peshawar, and Quetta.

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What sets apart these military enterprises from private and government entities is their exemption from state oversight mechanisms. Parliament rarely scrutinizes the military budget or audits its expenditures. Civilian administrations have consistently faltered in holding the military accountable for its business interests, largely due to deficiencies in the administrative framework.

Exploiting these loopholes, the military has entrenched itself as a parallel authority in politics and economics, operating free from civilian supervision. The compromised political elite, vying to serve as a facade for military-dominated governance, further complicates this dynamic.

Thus, while ostensibly aimed at supporting the welfare of service personnel, the profits earned by the military’s corporate entities benefit shareholders and managers, many of whom are current or retired army officers. Instead of directly enhancing the armed forces’ welfare or easing the state’s economic obligations, these businesses primarily serve the personal financial interests of military leaders. Meanwhile, they continue to receive substantial government funds earmarked for the armed forces’ welfare expenditures.

The Pakistan military’s significant utilization of vital financial resources, both through budgetary allocations and other channels, facilitated by its collaboration with civilian authorities like the Shehbaz Sharif-led PML-N government, severely hampers the country’s economic recovery efforts.

The operational dynamics of the military underscore the urgent need for Islamabad to acknowledge that expanding military budgets pose challenges in defining and limiting the military’s appropriate role in national affairs.

–IANS

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Laos seeks to enhance nutrition amid climate change concerns

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Laos seeks to enhance nutrition amid climate change concerns

Laos seeks to enhance nutrition amid climate change concerns

Vientiane (Laos), Aug 22 (IANS) Representatives from the Lao government and development partners have attended a conference here titled “Climate Change and Nutrition in Laos: Intersections and Interventions” to discuss the impact of climate change on nutrition in the Southeast Asia country and potential solutions.

Speaking at the conference, deputy director general of the Department of Hygiene and Health Promotion under the Lao Ministry of Health Viengkhan Phixay, said, “We gather to address a critical and interwoven issue: the impact of climate change on nutrition and how we can work together to tackle these challenges,” Xinhua news agency reported.

The Lao government is actively engaged in this endeavor, with numerous policies and initiatives aimed at addressing both climate change and nutrition, Lao National Television reported on Thursday.

“By leveraging the Scaling Up Nutrition network in Laos, which is led by the government, and supported by civil society, donors, and the United Nations, we have a robust platform to tackle the negative impacts of climate change while improving nutrition and overall health for everyone in Laos,” Viengkham said at the conference held on Monday.

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The conference featured a series of presentations that not only detailed evidence-based research but also introduced innovative tools for measuring and enhancing nutrition under the impact of climate change.

The conference stressed the critical need for integrated approaches to tackle the intertwined challenges of climate change and nutrition, and setting the stage for impactful future collaborations.

–IANS

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One killed, seven injured in shootout in Iraq

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One killed, seven injured in shootout in Iraq

One killed, seven injured in shootout in Iraq

Baghdad, Aug 22 (IANS) A civilian was killed while seven others were injured on Thursday in a tribal shootout in Iraq’s holy Shiite province of Najaf, according to a local security source.

The shootout erupted in the early hours between armed men from the local tribe in the al-Zarga area in northern Najaf, some 160 km south of Baghdad, a local police officer told Xinhua on condition of anonymity.

The clash resulted in the killing of an Iraqi civilian and the injury of seven others, including three Iranian Shiite pilgrims, the source added.

A joint force from the Interior Ministry’s emergency response division and Najaf provincial police arrested 53 gunmen from both sides of the shootout and seized weapons and ammunition, the Interior Ministry said in a statement.

It added that search operations are ongoing to locate additional gunmen and weapons, with more details to be released later.

The incident took place as numerous pilgrims traveled to the city of Karbala to observe Arbaeen, which marks the end of a 40-day mourning period for the killing of Imam Hussein, the grandson of Prophet Muhammad, in the Battle of Karbala in 680 A.D.

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Typically, these pilgrims also visit Najaf as part of their journey to Karbala.

–IANS

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Bangladesh seeks $1 billion budget support from World Bank

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Bangladesh seeks  billion budget support from World Bank

Bangladesh seeks $1 billion budget support from World Bank

Dhaka, Aug 22 (IANS) Bangladesh’s interim government has sought $1 billion from the World Bank as budgetary support.

The call came from the country’s Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan’s meeting with Abdoulaye Seck, the World Bank’s Country Director for Bangladesh and Bhutan, in Dhaka on Wednesday.

He made the plea as the ministry owes more than 2 billion dollars to suppliers in import costs of power and energy, Xinhua news agency reported.

Khan mentioned that the interim government, which was formed with many pressing mandates, is due to settle a $2 billion debt left by the previous government in the power sector.

He said they have already suspended activities under the much-criticized Quick Enhancement of Electricity and Energy Supply Act 2010 and abolished the government’s power to set energy prices without any public hearing.

On August 5, the former Prime Minister of Bangladesh, Sheikh Hasina, was ousted from her country and power, ending her rule since January 2009.

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This event was seen as a massive escalation, with what initially started as student’s protests and resulted in a major crisis in Bangladesh.

Earlier on August 8, Nobel laureate Muhammad Yunus took oath as the head of Bangladesh’s interim government.

–IANS

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Search for missing migrants underway after boat capsizes in Serbia: Ministry

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Search for missing migrants underway after boat capsizes in Serbia: Ministry

Search for missing migrants underway after boat capsizes in Serbia: Ministry

Belgrade, Aug 22 (IANS) Serbian police are still searching for seven missing migrants in the Drina River after their boat capsized when crossing from Serbia to Bosnia and Herzegovina, Serbia’s Interior Ministry confirmed in a press release issued on Thursday.

According to testimonies of the migrants who managed to reach the shore, there were approximately 25 people on board. So far, police and rescue teams have found 18 individuals, including three children, on the riverbank, Xinhua news agency reported.

Serbian Deputy Prime Minister and Minister of the Interior Ivica Dacic said police and the Emergency Situations Sector responded promptly after being alerted by the Bosnian border authorities early Thursday morning.

An intensive search is underway in the Drina River and its surrounding area.

The European Border and Coast Guard Agency, Frontex, reported a significant decrease in illegal border crossings in the Western Balkans during the first half of 2024.

The illegal crossings towards EU borders reached 12,407 between January and July 2024, a 75 per cent drop compared to the same period last year.

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–IANS

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Islamabad sealed with containers amid threats of religious and political protests

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Islamabad sealed with containers amid threats of religious and political protests

Islamabad sealed with containers amid threats of religious and political protests

Islamabad, Aug 22 (IANS) Islamabad, the capital of Pakistan, turned into a fortress on Thursday with dozens of containers forcing closure of several roads with heavy deployment of law enforcement forces following the cancellation of a No-Objection Certificate (NOC) of an anti-government protest planned by Pakistan Tehreek-e-Insaf (PTI) and protest call by religious parties, including the Jamaat-e-Islami (JI), Jamiat Ulema-e-Islam (JUI) under the banner of Majlis-e-Tahaffuz-e-Khatme Nabuwwat against a Supreme Court decision in the Mubarak Sani case.

Anticipating widespread protests, the local administration, which had cancelled the NOC, imposed Section 144 in the city, barring assembly of people and also closed all educational institutions for the day.

Later in the day, the PTI announced its decision to postpone its protest rally and rescheduled it for September 8.

The government maintained that it did not want to take any chance considering the Supreme Court hearing and also the presence of Bangladeshi cricket team in the country which is currently touring Pakistan for a Test series.

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On Wednesday, the capital administration of Islamabad decided to cancel the NOC for PTI, less than 24 hours before the scheduled public gathering in Tarnol area. PTI had earlier announced that it would go ahead with its planned gathering even after its NOC was revoked.

“It is concerning that the government might try to exploit the rally to incite unrest and blame it on PTI. They are scared and are trying to find ways to orchestrate cases against us,” said senior PTI leader Azam Swati.

Imran Khan’s party has been struggling to hold a political gathering in the capital for the past five months with the local administration delaying grant of any permission to hold such an event. Even after a permission is granted, it ends up being revoked a few hours later.

The latest episode is the second time the capital administration has cancelled the NOC issued to PTI for holding a political gathering at Tarnol.

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The government maintains that it had detailed meeting with the Inspector General Police, Deputy Commissioner, senior officers from the Chief Commissioner’s office, officials of the Inter-Services Intelligence (ISI), Military Intelligence (MI) and Intelligence Bureau (IB) after which it was decided that there will be serious law and order concerns if the gathering is allowed.

On the other hand, several religious parties have also taken to the streets in Islamabad, protesting against the Supreme Court of Pakistan’s verdict in the Mubarak Sani case.

Tehreek-e-Khatam-e-Nabuwat, an umbrella name for different religious parties, has called for a protest in front of the Supreme Court after the July 24 Supreme Court verdict in the case, maintaining and ruling that while Ahmadis are declared non-Muslims, they retain the right to profess and proliferate their religion, provided they do not publicly use Muslim terms or introduce themselves as Muslims.

In February 2024, Mubarak Ahmed Sani, an Ahmadi, was accused of violating the Punjab Holy Quran (Printing and Recording) Amendment) Act 2021 by distributing the proscribed book ‘Tafseer-e-Sagheer’. However, the Supreme Court maintained that the alleged act occurred in 2019, before it was criminalised in 2021.

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The Supreme Court decision was widely criticized by the religious groups who demanded the federal and the Punjab government to challenge the decision and ensure punishment for Sani.

The Punjab government later filed a review petition in the Supreme Court while a petition was also filed by the Federal government on directions of the Prime Minister Shehbaz Sharif.

–IANS

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