The Economic Coordination Committee (ECC), Pakistan’s leading economic authority, has approved a supplementary grant of about $160 million for defense projects in the current fiscal year, as announced by the finance ministry on Thursday.
This decision followed a meeting led by Finance Minister Muhammad Aurangzeb, where the ECC addressed special allowances for the Anti-Narcotics Force (ANF) and the Anti-Rabies Vaccine, among other issues.
Pakistan’s defense budget often attracts media scrutiny due to the military’s significant role in the country’s political and economic landscape. The allocation of substantial funds for defense fuels ongoing discussions about balancing security needs with vital public services like education and healthcare.
“The ECC approved a proposal from the Defense Division for a TSG totaling Rs45 billion ($160 million) for various pre-approved defense projects for the fiscal year 2024-25,” the finance ministry stated.
This announcement comes on the heels of the government’s approval of Rs60 billion ($215 million) in supplementary grants for Operation Azm-e-Istehkam, aimed at combating militancy, alongside a 17.5 percent increase in the overall defense budget to Rs2.12 trillion ($6.15 billion) in June to meet the nation’s security demands.
The ECC also sanctioned a proposal to increase the special allowance (equal to 20 daily allowances) for ANF employees, aligning it with other federal law enforcement agencies. The financial impact of this adjustment, totaling Rs264.744 million ($950,000), will be managed within the current year’s approved budget.
Concerns about transparency in the defense budget remain, as governments often only provide overall figures without further details. Recently, economist Dr. Kaiser Bengali, who resigned from the government’s austerity committee, highlighted the importance of reducing government spending, including non-combat defense expenditures, to tackle Pakistan’s significant budget deficit.
