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News18
11-06-2025
- Business
- News18
Guns Over Growth: Pakistan's Defence Budget Hike A Survival Tactic After Op Sindoor Exposed Failures?
Last Updated: The defence budget hike has prompted concerns that funds will be diverted towards rehabilitating and building terror camps destroyed during Operation Sindoor, sources said. Pakistan is prioritising military spending over development, as evidenced by a significant 20 per cent increase in the defence budget, announced weeks after India's Operation Sindoor destroyed several terror sites in the country. This decision by the Shehbaz Sharif-led government appears to be an attempt to satisfy Field Marshal General Asim Munir's demands. The recent escalation in military expenditures underscores urgent requirements following India's precision strikes between May 7-10, 2025, which revealed critical weaknesses in Pakistan's air defence systems, top intelligence sources have told CNN-News18. Intelligence sources confirm that Chinese and Turkish systems, including HQ-9 SAMs and Bayraktar TB2 drones, were unable to intercept Indian drones and missiles. Major losses occurred at the Nur Khan airbase, necessitating a complete strategy overhaul. These failures highlighted Pakistan's technological inferiority, shared by China, in countering India's SkyStriker kamikaze drones and SCALP cruise missiles. China, aiming to enter the Tier 1 weapon market, is perpetuating a false narrative of success from Operation Sindoor, sources said. This budget increase, likely influenced by China, grants more control to Rawalpindi at the expense of Pakistan's economic stability. Despite a $22 billion debt crisis and fresh IMF loans, Pakistan has diverted funds towards military spending, ignoring warnings of fiscal unsustainability. The budget hike has prompted concerns that funds will be diverted towards rehabilitating and building terror camps destroyed during Operation Sindoor, sources said. Intelligence sources also suggest that Pakistan's spending will target vulnerabilities exposed during the conflict, including the acquisition of J-35 stealth fighters, with the first batch of 30 arriving in August 2025 at a 50 per cent discount from China. Pakistan is also acquiring PL-17 missiles with a 400km range to counter Indian AWACS and refuelers, following the failure of PL-15 missiles. Additionally, Pakistan aims to modernise its navy with Type 039B submarines and Jinnah-class frigates to secure sea lanes amid Indian naval superiority. Another significant focus of the budget increase is on Space and ISR capabilities, intending to enhance interactions with Chinese BeiDou satellites for real-time battlefield surveillance, especially after India's actions left Pakistan's reconnaissance capabilities blinded. Furthermore, the budget hike is seen as a measure to suppress domestic threats, such as those from Balochistan and Khyber Pakhtunkhwa, under the guise of addressing external threats from India. According to intelligence sources, Pakistan's defence budget increase is a survival tactic following the battlefield failures exposed during Operation Sindoor. First Published: June 11, 2025, 11:14 IST
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First Post
09-06-2025
- Business
- First Post
Pakistan's Economic Survey Paints a Rosy Picture, But Reality Tells a Harsher Tale
The highlight of the survey is a projected GDP growth rate of 2.7% for 2025. Finance Minister Aurangzeb claims the economy is now on a 'gradual path to recovery'. However, Pakistani people are still struggling with prices of basics like food and fuel read more On the eve of its federal budget, the Shehbaz Sharif-led government on Monday (June 9) released Pakistan's Economic Survey 2024-25. Presented by Finance Minister Muhammad Aurangzeb, the report attempts to portray an economy inching towards recovery. But behind the optimistic tone, there's the plain old story of crisis, fragility and long-term neglect. The highlight of the survey is a projected GDP growth rate of 2.7 per cent for 2025, up from 2.5 per cent in 2024. This marks a rebound from the contraction of 0.2 per cent in 2023. While marginally positive, such growth remains insufficient for a country of over 240 million battling high inflation, food insecurity and low job creation. STORY CONTINUES BELOW THIS AD Aurangzeb claimed the economy is now on a 'gradual path to recovery' and stressed the need for 'sustainable growth'. But many of the headline numbers in the report are being seen as an attempt to gloss over entrenched structural problems, Moneycontrol reported. Inflation relief on paper, pain on the ground According to the survey, inflation has cooled to 4.6 per cent. If accurate, this would signal a sharp decline from the double-digit figures that have plagued Pakistan in recent years. However, on the ground, most Pakistanis continue to grapple with unaffordable groceries, fuel, and electricity bills. The inflation number, many say, is a statistical mirage. Ever-increasing food prices, record energy costs, and unemployment have been the defining features of Pakistan's economic reality. The survey also points to a sharp cut in interest rates from 22 per cent to 11 per cent. While that may appear encouraging, it comes after months of crushing borrowing costs driven by runaway fiscal mismanagement. The rollback is less a victory and more an attempt at damage control. Export growth modest, remittances still lifeline On the external front, the finance minister noted a 7 percent rise in exports and \$3.1 billion in IT-related earnings, including $400 million generated by freelancers. But the real story continues to be remittances, which have jumped to $38 billion this year. That's a $10 billion rise in two years, but not necessarily a cause for celebration. The surge is driven more by desperation than policy success, with Pakistan's diaspora sending larger amounts to support families back home. 'Pakistan remains addicted to the money its diaspora sends,' said a commentator. 'It's essentially outsourcing economic survival to workers abroad.' Fiscal tightrope and elite evasion One of the more surprising claims in the survey is a current account surplus of $1.9 billion. But this is not the result of booming trade or investment. It has more to do with restricted imports, currency curbs, and deferred payments. The survey notes a 26 per cent increase in revenue collection. However, this does little to change the ground reality, where indirect taxation continues to squeeze the poor, while military-run businesses, influential landlords and politically connected elites mostly escape the tax net. With over 80 per cent of the powerful segments avoiding taxes, the system remains deeply skewed. STORY CONTINUES BELOW THIS AD All eyes on IMF-aligned budget With the full federal budget due on Tuesday (June 10), many believe it is being tailored to meet IMF expectations rather than address domestic distress. The fund's conditions are reflected across the fiscal framework, from austerity measures to privatisation commitments. Aurangzeb may have declared the economy on a recovery path, but for most Pakistanis, the daily struggle continues. Fuel and food remain out of reach for many, unemployment among the youth remains high, and the private sector is still hesitant to invest in an unstable economic environment. The looming question is whether the budget will offer any relief. The answer, at least for now, seems to be no.
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First Post
03-06-2025
- Business
- First Post
Why Gilgit-Baltistan protesters have blocked highway linking Pakistan with China
Protests have intensified in Pakistan-occupied Gilgit-Baltistan, as local traders blocked the Karakoram Highway for a third day on Sunday. The demonstrators are protesting the suspension of trade between Pakistan and China at Khunjerab Pass since December last year. This is not the first time locals have taken to the streets over the government's policies read more Gilgit-Baltistan locals blocked the Karakoram Highway during a protest over Pakistan's trade policy. File Image/Reuters Protests have erupted in Pakistan-occupied Gilgit-Baltistan against the Shehbaz Sharif-led government's trade policies. As agitation escalated, demonstrators blocked the Karakoram Highway (KKH), a key artery of the China-Pakistan Economic Corridor (CPEC), on Sunday (June 1). Several protests have been reported in Gilgit-Baltistan in recent months, including over the power crisis. But why are locals protesting now? We will explain. Locals protest in Gilgit-Baltistan Local importers and exporters have been staging protests, backed by political parties, in Pakistan-occupied Gilgit-Baltistan . The sit-in entered its third day on Sunday when protesters blocked the Karakoram Highway, disrupting traffic, as per a Dawn report. The 1,300 km Karakoram Highway connects the Hasan Abdal city near Pakistan's Islamabad to Kashgar in China's autonomous Xinjiang region through the Khunjerab Pass. STORY CONTINUES BELOW THIS AD Thousands of passengers and tourists were stranded on both sides of the highway for hours on Sunday, as long queues of vehicles were reported due to the protests. The Pak-China Traders Action Committee, a group consisting of the Gilgit-Baltistan Importers and Exporters Association, Gilgit-Nagar Chamber of Commerce, and small trade associations from Nagar, Hunza and Gilgit, called the sit-in protest. Traders, scholars, and civil society members from these areas participated in the weekend agitation. Protesters have threatened to keep blocking the road linking Pakistan to China until their demands are met. Why are locals protesting? Protesters in Gilgit-Baltistan have taken to the streets against 'exploitative policies' of Pakistan's Federal Board of Revenue (FBR), reported Dawn. Traders are demonstrating against the suspension of trade between Pakistan and China for the past six months. The protest leaders claim more than 200 consignments imported from China are stuck at the Sost Dry port in Gilgit-Baltistan, with items worth billions of rupees already expired. Traders are calling for their clearance under a 'one-time amnesty scheme', citing losses. They allege the policies of FBR and Customs at Sost Dry Port have 'economically murdered' locals. The protesters said the trade between China and Pakistan through the Khunjerab Pass was the biggest source of income for locals, adding that the suspension of trade has rendered them unemployed. STORY CONTINUES BELOW THIS AD Stranded trucks stand along the Karakoram Highway, blocked by residents during a sit-in protest against power outages in Khaplu city, in Pakistan-occupied Gilgit-Baltistan region, on January 7, 2025. File Photo/AFP Local traders have to pay all taxes and customs duties on imported goods despite the disputed status of Gilgit-Baltistan . The president of PML-N Nagar chapter, Javed Hussain, slammed the Pakistan government, alleging it was 'not serious in settling the issue'. As per Dawn, he said trade policies at other ports in Pakistan were eased because 'people of those areas have representation in parliament'. 'GB people have been paying all taxes, yet the FBR is reluctant to clear their consignments. 'The government of Pakistan even gave amnesty to high-profile terrorists. So, giving a one-time amnesty to clear 250 consignments after paying taxes was not a big demand,' Hussain reportedly said. The Gilgit-Baltistan government told the protesters their demands were 'genuine', but the issue concerned the federal government led by Sharif. Recent protests in Gilgit-Baltistan In April, Gilgit-Baltistan witnessed widespread protests over land and mineral grabs and power outages. Hundreds of locals hit the streets against the Pakistan Army and government. They denounced the proposed Mines and Minerals Bill, saying it would enable the seizure of their land and minerals. STORY CONTINUES BELOW THIS AD 'The mountains, rivers, and minerals are ours. We are the custodians of this land, and we will not allow exploitation without our consent,' a protester said at the time, as per India Today. In January, hundreds of trucks with goods were stranded at the CPEC dry port as the Karakoram Highway was closed due to a sit-in protest against long power cuts. Last September, protests emerged in Gilgit-Baltistan as locals opposed the government's plan to reduce the quantity of subsidised wheat flour and eventually put an end to the subsidy. With inputs from agencies
Time of India
03-06-2025
- Business
- Time of India
PoK Karakoram highway protests: Thousands block Pakistan-China road for 3 days to protest against Shehbaz Sharif govt's policies
Thousands of residents in Pakistan-occupied Gilgit-Baltistan have blocked the Karakoram Highway for the third straight day, protesting against the Shehbaz Sharif-led federal government's trade policies. The highway, which connects Pakistan to China through the China-Pakistan Economic Corridor (CPEC), has seen a complete halt in vehicular movement since Friday. Protesters demand customs clearance of stalled Chinese consignments, accusing Islamabad of economic neglect. PoK Karakoram highway protests over stalled imports The protest began after customs authorities suspended clearance of Chinese-imported goods at Sost Dry Port nearly six months ago. Protesters claim that at least 257 consignments remain stuck at the port since December, resulting in expired goods, daily port charges, and financial losses. Protesters are demanding a one-time amnesty scheme to clear the stranded goods. 'The policies of the Federal Board of Revenue (FBR) and Customs Department have economically murdered us,' protesters said. 'We cannot bear the losses anymore.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esta nueva alarma con cámara es casi regalada en José Clemente Paz (ver precio) Verisure Undo Traders' groups lead the blockade The protest is led by the Pak-China Traders Action Committee, which includes the Gilgit-Baltistan Importers and Exporters Association, Nagar Chamber of Commerce, and various small trade bodies from Nagar, Hunza, and Gilgit. Since the protest began, long lines of vehicles have formed on both sides of the highway, leaving thousands of passengers and tourists stranded. The sit-in is taking place in Gulmat Nagar and has drawn support from traders, students, scholars, and civil society members. Live Events Recurring protests in Gilgit-Baltistan This is not the first time people in the region have taken to the streets. Last month, residents protested a proposed bill that would allow land and mineral grabs, along with prolonged power cuts. In October 2023, Skardu residents demanded the opening of the road to Kargil in India, citing rising prices and shortages of basic goods. Demonstrators have also protested what they describe as the illegal occupation of their lands, shouting slogans such as 'Kabze par kabza namanzoor' (we reject repeated occupations). Political voices join the protest Local leaders of Imran Khan's Pakistan Tehreek-e-Insaf (PTI) met protesters and expressed support for their demands. However, efforts to persuade the demonstrators to end the blockade were unsuccessful. Javed Hussain, a local leader of Prime Minister Shehbaz Sharif 's own Pakistan Muslim League (N), openly criticised the federal government's handling of the issue. 'GB people have been paying all taxes, yet the FBR is reluctant to clear their consignments. The government of Pakistan even gave amnesty to high-profile terrorists. So, giving a one-time amnesty to clear 250 consignments after paying taxes was not a big demand,' Hussain told Dawn. Gilgit-Baltistan government passes responsibility Muhammad Ali Quaid, special assistant to the Chief Minister of Gilgit-Baltistan, said the local administration lacked the authority to resolve the issue. He added that the matter must be handled by the federal government in Islamabad. The repeated protests across the region reflect growing frustration with the central government's economic and political approach toward POK. The continued unrest also exposes the widening gap between local needs and federal policies.
News18
03-06-2025
- Politics
- News18
Pakistan Admits Wider Damage From India's Operation Sindoor, Dossier Reveals 8 More Targets
India's 'Operation Sindoor' caused more damage to Pakistan than initially revealed, impacting eight additional locations, a Pakistan dossier has revealed. Pakistan has admitted it suffered more damage than it earlier acknowledged, during India's 'Operation Sindoor' on the intervening night of May 6 and 7. According to a confidential Pakistani dossier on its internal military Operation 'Bunyan un Marsoos', at least eight more of its locations suffered damage in the Indian strikes. A map in the dossier shows Indian strikes in Pakistan damaged structures in Peshawar, Jhang, Hyderabad in Sindh, Gujrat in Punjab, Gujranwala, Bhawalnagar, Attock, and Chor, on the intervening night of May 9 and 10. The mentioned eight locations were not mentioned by the Indian Armed Forces during the press briefings held after the May 7 counteroffensive. Another map revealed locations struck by India on the intervening night of May 7 and 8. On May 10, nearly three days after India launched 'Operation Sindoor' against terror targets in Pakistan and Pakistan-Occupied Kashmir (PoK), the Shehbaz Sharif-led country extended a call for a ceasefire to India. A couple of days after the ceasefire between India and Pakistan, satellite images captured by Maxar Technologies revealed significant damage to four air bases in Pakistan – Nur Khan Air Base in Rawalpindi, PAF Base Mushaf in Sargodha, Bholari Air Base, and PAF Base Shahbaz in Jacobabad. More than 100 terrorists, taking shelter in Pakistan, were also killed in the Indian operation. The operation was launched to avenge the April 22 Pahalgam terror attack, which was later claimed by The Resistance Front (TRF), an offshoot of Lashkar-e-Taiba. The attack resulted in the killing of 26 tourists. Survivors later said the terrorists had asked them about their faith, and shot dead those who said they were non-Muslims. The terrorists also asked the tourists to recite a ' Kalma ' (an Islamic phrase) to confirm if they were non-Muslims, before shooting them point-blank. Watch India Pakistan Breaking News on CNN-News18. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated!
