Pakistan spends so much money on defence amid COVID-19

The Pakistani government appears reluctant to reallocate its financial priorities, even in the face of escalating challenges posed by the COVID-19 pandemic. In recent weeks, Pakistan has witnessed a rapid surge in coronavirus infections, positioning it among the countries with the highest infection rates, as reported by the World Health Organization (WHO). Since the initial coronavirus case was reported on February 26, Pakistan has become one of the top 15 most affected nations, with a devastating death toll exceeding 4,000. Additionally, the country is grappling with a significant shortage of essential personal protective equipment (PPE) and life-saving ventilators. Despite these pressing healthcare needs, Islamabad's budget allocation for defense stands at a substantial $7.85 billion for the fiscal year 2020-2021, dwarfing the meager $151 million designated for health expenditures. This reveals a 12 percent rise in Pakistan's defense spending compared to the previous fiscal year. Moreover, the budget presents only a single-line figure, which fails to provide a comprehensive view of the actual defense outlays. In an effort to avoid scrutiny from the International Monetary Fund (IMF), Pakistan maintains a lack of transparency regarding its military expenditure. Several significant expenses, including major acquisitions by the armed forces, public sector development program (PSDP) spending, nuclear program allocations, paramilitary forces' funding, military pension disbursements, funding for the newly established national security division, and various other military-related costs, remain unaccounted for in the budget. If these were to be factored in, Pakistan's defense expenditure would climb to approximately $11 billion. This surge in defense spending comes at a time when Pakistan is compelled to allocate a significant 41 percent of its budget towards servicing its mounting debt. Even before the onset of the COVID-19 pandemic, Pakistan's economy was struggling, heavily reliant on an IMF loan package amounting to $6 billion. The nation's gross domestic product (GDP) growth rate had plummeted from 5.5 percent in the 2017-2018 fiscal year to a mere 2.4 percent in 2020-2021. Subsequently, in the wake of the coronavirus outbreak, it further descended into negative territory at -1.5 percent, marking an unprecedented downturn in Pakistan's economic history. Prior to the pandemic, Pakistan grappled with an external debt burden of approximately $112 billion. Presently, it confronts the added challenge of supporting around 25 million impoverished families who have lost their means of livelihood due to COVID-19. Furthermore, the country has witnessed a 30 percent drop in tax revenue, attributed to government inefficiencies and reduced spending amid the pandemic-induced lockdown. This has consequently led to a reduction in overall healthcare spending, as provincial governments received diminished funding from the federal government. On the international stage, Pakistan has appealed for support and debt relief from G20 countries, emphasizing the need for fiscal flexibility to redirect resources toward healthcare and environmental concerns amidst the global health crisis. However, despite these pressing needs and appeals for assistance, the Pakistani government appears more focused on maintaining a well-funded and robust military presence and impressing its strategic allies. Notably, it exported a plane filled with PPE to the American military in May, despite the escalating domestic demand for protective equipment. The government, in collaboration with the military, is seemingly determined to secure additional funds at a time when provincial governments are grappling with the fundamental needs of their citizens. There exists a persistent effort to undermine the 18th amendment to Pakistan's 1973 constitution, which grants financial autonomy to the provinces while reducing the federal government's share—a move that may further strain the country's fiscal landscape.