The share of defense in Pakistans budget has come down. But the savings are not transferred to education.

Who is responsible?

Pakistan Education Spending - Historical Data

Yea Education Spending (% of Annual Change
r GDP)
2017 14.54% -0.52%
2016 15.06% 1.88%
2015 13.19% 1.89%
2014 11.30% -0.21%
2013 11.51% 0.47%
2012 11.04% 0.12%
2011 10.92% -0.94%
2010 11.86% -0.22%
2009 12.08% -2.01%
2008 14.10% -1.35%
2007 15.45% 0.16%
2006 15.29% 1.51%
2005 13.78% 2.55%
2004 11.23% 2.74%
2000 8.49% -2.82%
1999 11.31% -0.45%
1997 11.75% 1.68%
1996 10.07% -0.24%
1995 10.31% 0.94%
1994 9.38% 1.57%
1993 7.80% 1.57%

Pakistan Military Spending/Defense Budget - Historical Data

Year Billions of US $ % of GDP
2018 $11.38B 4.03%
2017 $11.46B 3.77%
2016 $9.97B 3.59%
2015 $9.48B 3.55%
2014 $8.65B 3.48%
2013 $7.65B 3.47%
2012 $7.48B 3.48%
2011 $6.95B 3.29%
2010 $5.97B 3.42%
2009 $5.27B 3.27%
2008 $5.23B 3.46%
2007 $5.34B 3.51%
2006 $4.97B 3.65%
2005 $4.59B 3.90%
2004 $4.13B 3.96%
2003 $3.72B 4.09%
 2002 $3.27B 4.07%
2001 $2.84B 3.88%
2000 $2.97B 4.17%

But ironically the Education Budget sees a downward trend in the same period, from 2.49% of GDP in
2007/2008 to 0.9% in 2011/2012.

The period has seen two elected governments, the military-backed but civilian-led government of
President Musharraf from 2002-07, and the incumbent government of President Zardari that took
charge in 2008.

What the report does not say is where the savings from the defense budget have gone.

But the answer is not difficult for most Pakistanis. An elite of about 1,000 politicians, members of the
federal and four provincial parliaments, is accused by Pakistanis of the worst corruption in Pakistans
history. Pakistanis lose billions of rupees each year to massive corruption. Most of this corruption is
done by politicians and their allies inside the bureaucracy. The bureaucracy is often not the culprit. But
bad apples planted or coaxed by politicians ruin its reputation.

The PCRR says it favors an investment in both education and defense but that the military budget is not
to be blamed for the governments failure to allocate enough resources to education and stem
corruption.
Great nations know that value of a school teacher is more than a general in peace time and in war a
Sepoy [soldier] assumes priority over vice chancellor of university. Therefore, they invest in both to
uphold sovereignty and integrity of the nation, the report authors say.

General Ashfaq Kayani, the chief of the army staff, is on record as having said the military institution
would not mind if the entire amount of $7.5 billion pledged by the United States to Pakistan under the
2009 Kerry-Lugar-Berman bill went to the national budget, especially education and healthcare, adding
the military had no interest in any share of the amount. [So far, the US government has failed to release
the funds from the bill despite the hype about US aid programs to Pakistan.]

The latest figures that show a decline in Defense Budgets share in Pakistans GDP contradict the line
taken by critics who claim the countrys defense expenditure is responsible for holding back funding to
education and healthcare.

The governments failure to transfer funds to education has not been properly probed by civil society
groups and the media.

In Balochistan, for example, the governments failure to build and operate quality schools impacted
national security. The governments failure led several branches of the military, including Navy, Army and
Frontier Corp, to build and operate more than three-dozen schools and colleges open to the population
in the province.

Economists point out myths and facts about

Pakistan’s defence budget
 Pakistan education spending for 2017 was 14.54%, a 0.52% decline from 2016.
 Pakistan education spending for 2016 was 15.06%, a 1.88% increase from 2015.
 Pakistan education spending for 2015 was 13.19%, a 1.89% increase from 2014.
 Pakistan education spending for 2014 was 11.30%, a 0.21% decline from 2013.
–Govt to spend 17.7pc on defence-related activities in FY21 
–Army to get 47.6pc of the total defence budget of Rs1.28tr    

–Pakistan’s military expenditures on per capita basis are among lowest in the world; Israel
spends $2,000 on a per capita basis while Pakistan spends $22 

Farrukh Saleem, an economist and financial analyst, said that the first myth is that the
defence budget eats up the lion’s share of the country’s total budgetary expenses.

“In budget 2020-21, ‘Defence Affairs and Services’ has been allocated Rs1,289 billion out of
the total budgetary expenses of Rs7,295 billion. What this means is that defence comprises
17.67 per cent of the total expenses and 82.33 per cent of all government expenses are non-
defence related,” he explained.

Saleem said that the second myth is that of the total defence budget, Pakistan Army takes
away the lion’s share. “Pakistan Army gets Rs613 billion (47.6 per cent), Pakistan Air
Force Rs274 billion (21pc), Pakistan Navy Rs140 billion (11pc) and Inter-Services
Intelligence Rs262 billion (20pc).”

He said that the third myth is Pakistan’s defence budget has been increasing at a high rate.
In the 70s, he added, the allocation for defence amounted to 6.50pc of the gross domestic
product (GDP).

He stated that in the financial year 2001-02, 20 years ago, the allocation for defence
amounted 4.6pc of the GDP, whereas budget 2020-21 has allocated Rs1,289 billion which is
2.86pc of GDP.

In the 60s, Pakistan Army’s budget as a percentage of total expenditures hovered around
30pc. In budget 2020-21, Pakistan Army’s budget as a percentage of total expenditures has
come down to 8pc.”

The fourth myth is that Pakistan has a large military, he said, adding that there are at least
64 countries in the world that have more military personnel on a per capita basis than does
Pakistan.
These countries include Turkey, Iran, Iraq, Switzerland, Italy, Norway, Singapore, South
Korea, Russia, Sri Lanka, Egypt, Libya, Kuwait, Thailand, Saudi Arabia, Qatar, UAE,
Israel, Estonia, Vietnam, Slovenia, Botswana, Mongolia, Yemen, Kazakhstan, Cuba,
Mauritania, Croatia, Chile, Somalia, Albania, Sao tome and Principe, Namibia, Angola,
Cambodia, Uruguay, Bolivia, Romania, Morocco, Lithuania, Portugal, Burma, Algeria,
Azerbaijan, Bhutan, Burundi, Bulgaria, Columbia, Serbia and Montenegro, Cyprus,
Greece, Armenia, Djibouti, Maldives, Oman, Belarus, Jordan, Syria, Laos, Bahrain,
Brunei, Eretria and North Korea.

Saleem pointed out the fifth myth is that Pakistan’s military expenditures are the highest in
the world on a per capita basis.

“Pakistan’s military expenditures on a per capita basis are actually one of the lowest on the
face of the plant. Israel spends $2,000 on a per capita basis and Pakistan spends $22 per
capita.”

For him, the sixth myth is that the military’s commercial undertakings are a burden on the
country’s economy.

“Fauji Fertilizer is one of the highest taxpayers in Pakistan. In 2019, Fauji Fertilizer paid
Rs42 billion in taxes and duties. Fauji Cement deposits around Rs10 billion a year in the
treasury on account of income taxes, excise duty and sales tax,” he said. “The fact is
Pakistan spends 2.86pc of its GDP on defence, while the global average is 2.18pc. Yes, we
do spend a higher percentage of our GDP on defence than the global average.”

He said the countries that spend even a higher percentage of their GDP on defence than
Pakistan does include Saudi Arabia (8pc), Israel (5.3pc), Russia (3.9pc) and United States
(3.4pc).

Saleem further stated, “It is also a fact that Pakistan Armed Forces are the sixth-largest in
the world but our expenses on a per soldier basis are the lowest. The US spends $392,000
per soldier, Saudi Arabia $371,000, India $42,000, Iran $23,000 and Pakistan $12,500 per
soldier.”

Agreeing with him, economic expert Dr Ikramul Haq said that his calculations are correct
and depict a true picture.

“In the media, there is dissemination of misinformation about the budget allocations for
defence and benefits available to them,” he said. “The biggest burden on the national
exchequer is debt servicing that increased monstrosity due to wrong economic and fiscal
policies of civilian regimes since 2008.”

Dr Haq shared that only about 10 per cent officers reach the rank of brigadier that is BPS-
20 and when compared to the ratio of civil services, it is extremely low.

He added that only about 2 per cent officers become major generals and this average is
further reduced for lieutenant generals.

The economic expert said that ratio of similar grade officers in civil services is much
higher. He added that the allowances and benefits of legislators are much more as they
enjoy free residences and vehicles, air tickets, etc.

“All armed officers pay their utility bills with no exception whatsoever but judges of higher
courts get tax-free benefits of electricity and petrol, including tax-free cash judicial
allowance,” Dr Haq pointed out.

He said that all officers of armed forces having taxable income pay income tax that is
deducted at source for all ranks. If official residence is allotted, house rent is deducted from
officers or all forces, he added.
He further said that Army Welfare Trust (AWT) as a commercial organisation is self-
governing and generates funds through various businesses, and then deposits taxes in the
government’s treasury.