Nuclear-armed Pakistan freezes defence budget

The nuclear-armed Pakistan on Monday announced that it had frozen its defence budget and urged South Asian arch rival India to also reciprocate the move for the lasting peace in the region as the two countries have fought three wars since 1947.

"As a measure of our tangible display to seek peace with our neighbours, we have decided to freeze, actually reduce, the defence budget when seen in the context of inflation and the rupee – dollar parity," Prime Minister Yousuf Raza Gilani told the National Assembly in his speech.

"We hope to see a reciprocal gesture from our neighbour for the sake of peace and prosperity of the region," Gilani said.

The premier said that Pakistan is located in a geo strategically important but a turbulent region.  "We live and operate in a volatile environment.  We cannot, therefore, afford to remain oblivious to our defence needs.
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"I wish to categorically state that Pakistan stands for peace with honour. We shall continue to strive for it without compromising on our national interests.
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"As a matter of policy, I declare that our defence is based on the strategy of minimum essential credible deterrence and that we shall not enter into any arms race."
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Gilani explained that presently the budget of the three Services, army, air force and navy, Ordnance factories and others is presented as a one line allocation.  It is not approved separately but in a consolidated form for all Defence Services.  After approval of the budget, Ministry of Defence apportions the allocation to the three Services and other Defence organizations.

"My government has now decided to present the Defence Budget estimate in a format reflecting the estimated expenditure under major "Heads" in the Parliament.  I am pleased to inform you that the Ministry of Defence and Chief of Army Staff have fully endorsed the revised format of the Defence Services budget estimates," he said.

Pakistan and India test their nuclear devices in May 1998 and were on the brink of a nuclear conflict in 2002 after tensions mounted over the disputed Himalayan region of Kashmir, which is divided between the two but claimed by both in full.

In early 2004, the two countries started a slow and sluggish peace process dubbed as composite dialogue.�

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