Pakistan's defense spending as a percentage of GDP has fallen below 3% in recent years despite maintaining the 7th largest military. In 2010-2011, Pakistan collected Rs 2,236 billion in taxes but after provincial shares and debt servicing, there was still a shortfall of Rs 105.988 billion. Even after collecting high taxes, expenses like subsidies and pensions meant the government was left short each year.

1. By: Tariq Sarwar Awan tariq_sarwar@yahoo.com
or www.facebook.com/tariqsarwarawan
HARD FACTS ABOUT PAKISTAN
BE BRAVE AND OVERCOME THE CRISES

2. 2007 SCENARIO
• in 2007, Pakistan’s defense expenditure, in
dollar terms was less than 3% of its GDP.
With continuous downslide of rupee, this
figure must have fallen to close to 2%. With
defense budget at 3% of GDP, Pakistan was
ranking at 46 in world nations to have lower
chunk of its national income allocated to
defense.
(CIA-The World Factbook)

3. THANKS PAKISTAN ARMY
• Consider the fact that even with this
poor allocation, Pakistan has the 7th
largest defense force, a feat of most
economic, efficient and effective
security apparatus all Pakistanis
should genuinely be proud of.

4. 2010-11 TAXES RAISED
• If we look at the actual budget
figures for the year 2010-
11, Pakistan raised Rs 2,236 billion
from its taxes.
• After disbursement of provincial
share (Rs 997.7 billion), the
government was left with only
Rs 1,238 billion.

5. << THINK PAKISTAN >>
• Out of this Rs 1,238 billion:
• Rs 855.5 billion was paid in debt servicing
and repayment of long-term loans.
• After meeting other obligatory expenses like
Rs 395.8 billion for subsidies
• Rs 92.688 billion for pension liabilities,
• the national kitty was already short of Rs.
105.988 billion.

6. INCOME (Billion Rs. )
• Tax collection 2236
• Provincial share 997.7
• Govt. left with 1,238

7. EXPENSES INCOME (Billion Rs. )
• Total with Govt. 1,238
• Debt servicing & repayment of loans 855.5
• Remaining with Govt. 382.5

8. SHORT FALL even after collecting
2236 billion Rupees
• Subsidies, etc. 395.8
• pension liabilities 92.688
• Total Expense 488.488
• Less 382.5 - 488.488 = -105.988
• Govt. always short of -105.988 Billion Rs.
-105.988