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Pakistan’s defense budget of $7.6 billion is good news for China. Here’s Why – First Post
China is likely to benefit from Pakistan’s increased defense budget. AFP
Pakistan’s Finance Minister Muhammad Aurangzeb presented the country’s budget in the National Assembly on Wednesday. This marked the first budget of the Pakistan Muslim League (Nawaz) (PML-N) and Pakistan People’s Party (PPP) coalition government after the February 8 general elections. The budget allocated 2.122 billion Pakistani rupees (approximately $7.6 billion) to defense for the 2024-25 fiscal year, an increase of almost 15 percent over the previous financial year.
Pakistan’s increased defense budget could be good news for China, its main arms trade partner. We explain why.
An overview of Pakistan’s defense budget
Pakistan’s defense budget has been divided into two parts: defense administration and defense services. The defense services section has several main components:
Employee-related expenses cover costs associated with defense sector personnel. This includes salaries, wages, pensions, allowances and other benefits provided to military and civilian personnel. A total of PKR 815,186 has been allocated for this.
Operational expenses cover the daily costs necessary for the operation of defense services. This category likely includes utilities, fuel, equipment maintenance, supplies, training costs, and other recurring expenses. PKR 513,328 was allocated for this.
Investments in physical assets involve expenditures on tangible items such as military equipment such as buildings, aircraft, ships, tanks, and weapons systems. This is part of the budget most closely linked to China. A total of PKR 528,612 is earmarked for investment in these assets.
Civil work refer to construction and infrastructure projects in the defense sector. This includes the construction and maintenance of military bases, airfields, docks, roads and other essential facilities. PKR 244,874 has been allocated in Pakistan’s defense budget for civil works.
The disruption of Pakistan’s defense budget. Image Source: Summary Budget, Government of Pakistan
How China benefits from an increase in Pakistan’s defense budget
Pakistan’s increased defense budget is particularly advantageous for China, given the robust defense relationship between the two countries. Cooperation between Islamabad and Beijing encompasses an extensive arms trade that is overwhelmingly in China’s favor.
According to a report by the Stockholm International Peace Research Institute (SIPRI), Pakistan is the fifth largest arms importer in the world. From 2019 to 2023, 82% of its arms imports came from China.
In the same period, China was responsible for 5.8% of all arms exports in the world. Islamabad received 61 percent of these weapons.
China has been a significant supplier of military equipment to Pakistan, including aircraft, submarines, tanks and missiles. The two countries have entered into joint ventures to produce military equipment, such as the JF-17 Thunder fighter jet, designed specifically for Pakistan. This aircraft can carry several Chinese air-to-air missiles, including the formidable PL-15.
Pakistan is one of the biggest recipients of Chinese weapons. From 2019 to 2023, Islamabad received 61% of all Chinese arms exports. In the same period, Pakistan’s arms imports grew by 43%, with 82% of these imports coming from China.
Equipment supplied by China
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Air force: The Chinese-developed JF-17 Thunder multirole combat aircraft and the F-7, designed for short-range air-to-air combat, constitute significant parts of Pakistan’s fighter fleet. The Chinese HQ-9/P air defense system and CH-4 reconnaissance and attack drones are part of Pakistan’s air defense and surveillance capabilities.
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Army: China supplies a substantial part of Pakistan’s armored and offensive support units, including artillery and rocket launchers. Despite China’s smaller contribution to infantry vehicles and aviation units, support for artillery and rocket launchers is crucial to fire missions.
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Navy: China assists in the production and modernization of naval assets, including submarines and surface ships. The strategic partnership includes the construction of Chinese-designed ships and submarines in Pakistani shipyards, increasing local defense production capabilities.
Source: Report titled “A Threshold Alliance: The China-Pakistan
Economic and strategic benefits for China
Clearly, defense trade between Pakistan and China generates significant revenues for Chinese defense manufacturers. Continued military collaboration ensures a steady flow of Chinese military equipment to Pakistan, promoting long-term economic ties.
China’s support bolsters Pakistan’s military capabilities, securing a strategic ally in South Asia, where India is building its influence. For Beijing, Pakistani military capabilities aim to help counterbalance New Delhi’s regional dominance, indirectly supporting Chinese interests in the region.
Pakistan’s increased defense budget is a strategic advantage for China, reinforcing the deep-rooted military collaboration between the two nations.
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