ISLAMABAD: Pakistan military chief General Qamar Javed Bajwa said that voluntary decision to forego even the routine increase in the annual defense budget is “not a favor to the nation as we are one, through thick and thin.”
Gen Bajwa said this while taking to soldiers on Eid Day in Pakistani Kashmir near Line of Control(LOC). He offered prayer with troops on front line and added that “irrespective of the voluntary cut in defense budget coming financial year (FY), there shall be no impact on our response potential to all types of threat and quality of life of the soldiers,” military media wing ISPR said in a statement.
“The no pay raise decision is also only for the officers and not for the soldiers. We shall manage the shortfall during the FY by tightening our belt in areas where it doesn’t effect the two aforesaid aspects,” Gen Bajwa said.
Pakistan army has agreed in a rare move to cut the defense budget for the next fiscal year in line with broader austerity measures because of financial crunch.
Prime Minister Imran Khan, on Tuesday, night took to the twitter to revealed that the Pakistan army has agreed to slash the defense budget for the next fiscal year.
“I appreciate Pak Mil’s [Military] unprecedented voluntary initiative of stringent cuts in their defense expenditures for next FY [Fiscal Year] bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas & Balochistan,” PM Khan Tweet read.
“It is good move and comes at a time when country is facing serious financial and economic crisis. It also shows the army’s high command is people friendly,” defense analyst Lt. Gen. (Retired) Talat Masood told Arab News.
He said this cut will not have any major impact on armed forces fighting capabilities because “most of cuts at the defense expenditure would be on the administrative sides,” Gen (Ret) Masood said.
“In not seeking any increment to their budget, not even that to match inflation, the armed forces has demonstrated their sensitivity to the difficult economic conditions the country faces,” economic analyst, Imperial College London Graduate, Javed Hassan told Arab News.
Hassan said that this gestures also exhibits the military chief’s appreciation of the fact that ensuring healthy economy is as critical for national security as is maintaining defense material and personal capabilities.
“The armed forces standing together with the government despite external and internal threats will strengthen the latter’s resolve to institute necessary economic reforms that has to be undertaken to rejuvenate the economy for long-term sustainable and equitable growth,” Hassan said.
Prime Minister Khan’s adviser and de facto finance chief Abdul Hafeez Shaikh next week on ,June 11, is scheduled to announce the budget for the financial year beginning in July.
Finance Chief, Shaikh in tweet also appreciated the Armed Forces leadership for limiting their budget and thus contributing toward government drive of managing expenditures, reducing the fiscal deficit and achieving economic stability. “All of us have to play our role in meeting our national goals,” Shaikh’s tweet read.
Cut in budget will not impact defense capabilities – Military Chief
Cut in budget will not impact defense capabilities – Military Chief
- Pakistan army has agreed in a rare move to cut the defense budget for the next fiscal year
- PM Khan appreciates military’s voluntary initiative of stringent cuts
Pakistan orders four-day workweek, shuts schools to save fuel amid Middle East oil crisis
- The development comes as ongoing US-Israeli strikes on Iran disrupt oil supplies in Strait of Hormuz, push prices past $119 a barrel
- Islamabad bans government purchases, cuts fuel allocation for vehicles as well as workforce in public and private offices by 50 percent
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday announced austerity measures, including a four-day work week, cuts in government expenditures and closure of schools, to offset the impact of rising global oil prices due to an ongoing conflict in the Middle East.
Global fuel supply lines have been disrupted in the Strait of Hormuz, which supplies nearly a fourth of world oil consumption, after Tehran blocked it following United States-Israeli strikes on Iran and counterattacks against US interests in the Gulf region.
Oil prices surged more than 25 percent globally on Monday to $119.50 a barrel, the highest levels since mid-2022, as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war with Iran.
In his televised address on Sunday night, Sharif said global oil prices were expected to rise again in the coming days but vowed not to let the people bear their brunt, announcing austerity measures to lessen the impact of fuel price hikes.
“Fifty percent staff in public and private entities will work from home,” he announced, adding this would not be applicable to essential services. “Offices will remain open for four days a week. One-day additional off is being given to conserve oil, but it would not be applicable to banks.”
Sharif didn’t specify working days of the week and the government was likely to issue a notification in this regard.
He said a decrease of 50 percent was being made in fuel allocation for government vehicles immediately for the next two months, but they would not include ambulances and public buses.
“Cabinet members, advisers and special assistants will not draw salaries for the next two months, 25 percent salaries of parliamentarians are being deducted, two-day salaries of Grade 20 and above officers, or those who are paid Rs300,000 ($1,067) a month, are being deducted for public relief,” he said.
Similarly, there will be 20 percent reduction in public department expenses and a complete ban on the purchase of cars, furniture, air conditioners and other goods, according to the prime minister.
Foreign trips of ministers and other government officials will also be banned along with government dinners and iftar buffets, while teleconferences and online meetings will be given priority.
“All schools will be off for two weeks, starting from the end of this week, and all higher education institutions should immediately begin online classes,” he said.
Sharif’s comments were aired hours after Pakistani authorities said the country had “comfortable levels” of petroleum stocks and the supply chains were functioning smoothly, despite intensifying Middle East conflict.
Petroleum Minister Ali Pervaiz Malik said three oil shipments were due to reach Pakistan this week, state media reported.
Meanwhile, Pakistan Navy (PN) launched ‘Operation Muhafiz-ul-Bahr’ to safeguard national energy shipments, the Pakistani military said on Monday, amid disruptions to critical sea lanes due to the conflict.
The navy is conducting escort operations in close coordination with the Pakistan National Shipping Corporation (PNSC), according to the Inter-Services Public Relations (ISPR), the military’s media wing. It is fully cognizant of the prevailing maritime situation and is actively monitoring and controlling the movement of merchant vessels to ensure their safe and secure transit.
“With approximately 90 percent of Pakistan’s trade conducted via sea, the operation aims to ensure that vital sea routes remain safe, secure, and uninterrupted,” the ISPR said on Monday. “Currently, PN ships are escorting 2 x Merchant Vessels, one of which is scheduled to arrive Karachi today.”
