PM Nawaz Sharif raises Pakistan's defence budget 15 per cent

[farhan_9909]

@sayareakd, this is not the full picture of the interest payments to be made.

You have to look at their forex Reserves to get a better picture.

Their Forex Reserves as of May 17th is US$ 6.4 Billion which is sufficient for 1.5 months of imports. For this financial year they have to make interest payments to the tune of nearly US $ 1.25 Billion and nowhere have they mentioned the Principal amount to be returned ( some fudging is there).

Pakistan is on the verge of an imminent IMF Bailout of nearly US $ 5 Billion and this is not going to go down well with the people on the street and GHQ in particular, because of the restrictions that will come with it.

i dont know how but Ishaq Dar claimed to rise the forex reserves to 20billions within few years.

Yes its true pakistan is about to get upto 5-6billions from IMF this year

But the govt is trying there level best to increase tax to gdp ratio,decrease govt expenses,Get PR and PIA on track.

top priority goes to Electricity.and the circular debt is to be clear within 60days.
If the loadshedding is reduced to like the musharaf era.the Economic growth itself alone with this will increase by 2% more,expert says so

 

[farhan_9909]

HEC budget is increased this year by almost to double

THE education experts have appreciated the initiatives of the federal government in the federal budget 2013-14 as healthy sign for the promotion of higher education in the country.

The federal government has allocated Rs 57 billion for higher education including 18 billion for development works in its first budget, a visible increase in the budget as compared to last year's annual budget which was Rs 32 billion. The government has also increased scholarships from five thousands to six thousands. The government also announced to initiate Prime Minister Laptop's Scheme in the budget.

Talking to The News, Punjab University Academic Staff Association (PU-ASA) Prof Dr Ehsan Sharif termed the increase in development budget and an increase of number of scholarships a positive step of the newly inducted PML-N government and hoped that the Higher Education Commission would be protected by the federal government for improvement of higher education in the country. He said Prime Minister's Laptops Scheme would also prove fruitful for students who could not afford such things. He said that previous PML-N Punjab government had distributed laptops in transparent manner and hoped this would continue in the same way.

President Government College University Academic Staff Association (GCU-ASA) Prof Dr Muhammad Akram lauded the initiatives taken by the PML-N's federal government in the budget to strengthen higher education commission. He said it was a good gesture that newly formed PML-N government had also increased scholarships in the annual budget. He appreciated the federal government's step to increase amount for higher education in the budget to Rs 57 billion as compared to last year's budget in which 32 billion were allocated.

Educationists laud plan for higher education - thenews.com.pk


the budget was 15.8 bil for higher education last year and 14 bil the year before that.

 

[sayareakd]

i dont know how but Ishaq Dar claimed to rise the forex reserves to 20billions within few years.

Yes its true pakistan is about to get upto 5-6billions from IMF this year

But the govt is trying there level best to increase tax to gdp ratio,decrease govt expenses,Get PR and PIA on track.

top priority goes to Electricity.and the circular debt is to be clear within 60days.
If the loadshedding is reduced to like the musharaf era.the Economic growth itself alone with this will increase by 2% more,expert says so

You guys are screwed big time, first 50% of budget is gone for uneconomic activity, rest 50% is for other sectors. From this you want to use it for electricity, if you have any understanding of this sector it is capital intensive and it has long gestation period, means investment made will be recovered in long period of times.

with the figures given in your budget, you guys are not in any position to do anything at least within next 5 years. Your expenditure is killing you, if we dont kill you.

 

[ladder]

Defence division and SUPARCO and Defence Production Division budget has been downgraded heavily in revision.

So, we all now can logically conclude the stories about the indigenous production and licence production of various defense equipment.

 

[farhan_9909]

You guys are screwed big time, first 50% of budget is gone for uneconomic activity, rest 50% is for other sectors. From this you want to use it for electricity, if you have any understanding of this sector it is capital intensive and it has long gestation period, means investment made will be recovered in long period of times.

with the figures given in your budget, you guys are not in any position to do anything at least within next 5 years. Your expenditure is killing you, if we dont kill you.

you dont have idea of economics.

 

[sayareakd]

Very interesting

Firstly, the military pension is more than 3 times the civilian pension value, which shows the discriminatory proportion of military over civilian administration.
And this is for a country of 180 million citizens and less than a million military.
Secondly, the military pension is separate from military budget.
thirdly, the raise in pension values gives out two possibilities
1. there is a upward revision in pension value, more so in the case of military pension than civilian, which shows utter disregard that military has to national economy.
2. The figures are understated in he original budget and then is quietly revised.

Under the grants heading, the breakup would have been interesting.
A large amount has been given to " others", who and what are the others.

also what kind of subsidy are given and to whom?

thanks i also didnt pay attention to this fact more then 4 times pension to Pak Military means something wrong in this figures, they must be paying it to ISI

It is not possible to have this type of figures.

 

[farhan_9909]

Finance minister on talk show

http://www.awaztoday.com/News-Talk-Shows/39394/Kal-Tak-13th-June-2013.aspx

 

[sob]

@farhan_9909 the HEC budget is the best news for Pakistan, but the circular debt clearing will itself put a huge strain on the economy.

The situation will come around again because of the nature of the fuel used by most of the power plants. Once again they will end up in debt because they will not be able to recover the cost of electricity production.

PM Sharif is aware of this fact and that is the reason he wants to import electricity from India for Lahore.

 

[farhan_9909]

6millions are dedicated for a special Mission by ISI

 

[sayareakd]

you dont have idea of economics.

i have very very good idea of Eco, i did B Com (H) plus 10+2 in Commerce. Plus Eco was main subject in Prilim and mains at Civils.

 

[farhan_9909]

@farhan_9909 the HEC budget is the best news for Pakistan, but the circular debt clearing will itself put a huge strain on the economy.

The situation will come around again because of the nature of the fuel used by most of the power plants. Once again they will end up in debt because they will not be able to recover the cost of electricity production.

PM Sharif is aware of this fact and that is the reason he wants to import electricity from India for Lahore.

but if we provide 100% electricity to our industry.it will provide even more uplift to the economy..

please watch the video i posted above.when your free

 

[sob]

thanks i also didnt pay attention to this fact more then 4 times pension to Pak Military means something wrong in this figures, they must be paying it to ISI

It is not possible to have this type of figures.

If I understand correctly most of the administration is controlled by the Provinces. The federal administration is very small in Pakistan. Hence we see such anomaly.

But then also as @ladder has mentioned PA pretty much decides the pension figures and what not. I remember a TV Interview of Najam Sethi where he was comparing that an Indian Army Brigadier retires with an Maruti 800 while a Pakistani Army Brigadier retires with several Corner Plots ( his exact words).

 

[farhan_9909]

i have very very good idea of Eco, i did B Com (H) plus 10+2 in Commerce. Plus Eco was main subject in Prilim and mains at Civils.

Good.but these problems can be solved

for the moment if they reduce the loadshedding and increase the tax to gdp ratio..these 2 alone will provide enough uplift to our economy

nawaz is bad at everything.but best at economics.

 

[farhan_9909]

development budget is massively increased

Farrukh Saleem
ISLAMABAD: For the first time in history, we have a budget with a trillion rupee Public Sector Development Programme (PSDP). That's a trillion rupees worth of schools, hospitals, motorways, link-roads, electricity grids and dams. That's Rs6,000 for every man, woman and child on the face of this country. That's Rs30,000 for every Pakistani family.
For the first time in history, we have a budget where the government's expenditure stream is not much different from the previous budget. For the first time in history, the allocation for the PM's Office has gone down from Rs720 million to Rs500 million, a 45 percent year-over-year cut. For the first time in history a prime minister has voluntarily given up his Rs42 billion discretionary fund (and abolished discretionary funds of the federal ministers). Two other first-timers are the shaadi tax and the drama tax.
The budget also has a sign of political maturity as in the past governments have always abandoned schemes-whether good or bad-of their predecessors. The Benazir Income Support Programme of targeted subsidies stays. I only wish that we had retained the original name and made it conditional as oppose to keeping it as an unconditional subsidy.
For the first time since the nationalization programme began back in the January of 1972 a serious attempt to fill the Rs500 billion hole in the so-called Public Sector Enterprises is now under way. For the first time in four decades, a political will to stop uninterrupted bleeding has cropped out almost from nowhere. Is the will accompanied by capability? Only time will provide the answer.
Life being what it is, the budget also has dreams, bubbles and castles in the air. Bringing down the fiscal deficit from Rs2.2 trillion to Rs1.6 trillion is one of them. Others include the floatation of dollar bonds in the international markets, increasing the investment-to-GDP ratio to 20 percent, increasing international reserves by 100 percent and keeping inflation in single digit.
There's good news on higher education—an allocation of Rs57 billion and a 50 percent jump in the number of scholarships. There's good news on circular debt as well—a time frame of 60 days and a rumoured Rs400 billion T-bill auction to wipe off the entire debt.
Our minister of finance may not make favourable headlines, but he has made history. The document that he has presented makes him a dreamer and an artist —two in one. Someone intelligent once said, "An artist is a dreamer consenting to dream of the actual world."

Historic budget unveiled - Notlurking.com

 

[sayareakd]

Good.but these problems can be solved

for the moment if they reduce the loadshedding and increase the tax to gdp ratio..these 2 alone will provide enough uplift to our economy

nawaz is bad at everything.but best at economics.

you still dont get it, first of all where do you get finance for power plant ?

if you print more money or take loan or raise taxes which you can do, it will take money out of your system and put more pressure on debt repayment if first two options are taken. Power plants dont run in first day or 6 months it takes time.

So what you are saying wont happen in this financial year, even if you are super efficient, because you have lack of funds to start with. Then you are right this will generate economic activity. but again you have to get out of vicious circle first. Your are over spending and under income. 50% of spending is useless. Rest 50% you need it for running your country. So which part you will cut can you show me on figures i posted.

 

[farhan_9909]

you still dont get it, first of all where do you get finance for power plant ?

if you print more money or take loan or raise taxes which you can do, it will take money out of your system and put more pressure on debt repayment if first two options are taken. Power plants dont run in first day or 6 months it takes time.

So what you are saying wont happen in this financial year, even if you are super efficient, because you have lack of funds to start with. Then you are right this will generate economic activity. but again you have to get out of vicious circle first. Your are over spending and under income. 50% of spending is useless. Rest 50% you need it for running your country. So which part you will cut can you show me on figures i posted.

watch the video i posted.
all your question are answered

 

[farhan_9909]

how to solve circular debt within 60 days.
courtesy hasnain

Yes, A rough mechanism is as follows
1-At the moment government's circular debt is financed at KIBOR+4% (around 12-13%). Government is planning to raise equivalent debt through treasury bills (at around 9%) this would immidiately result in an interest savings of ~4% (immediate savings of around 20 billion PKR a year). So circular debt will be replaced with cheap government debt.
2-Now once the debt is on the books of the Government.Government can keep paying the portion off from recoveries (if the annual theft of 200 Billion is even reduced to around say 50 Billion) we can pay off 150 Billion of this debt every year.
3)Plus around 300 Billion worth of recoveries are outstanding (100 from Govt departments,200 Billion from private users) Even if the government is able to recover around 75% of this, it would further ease the circular by around 200 Billion.
4) Then government will have to remove all subsidies from consumers above lifeline consumer (<100 Units) to stop piling this debt further. But the execuation has to be ruthless and clear!

 

[hit&run]

most of your military hardware is of chinese origin, can't u pay them in rupee?

They pay them by lending ceding land assets like Gwadar and POK.