This is in response to queries about how pakistan manages its military at paltry budget of 7 billion $.
Rising miltary expenditure in sinking pakistan economy can create lot of resentment towards army.
So, they have developed numerous methods to hoodwing public about real cost of Pakistan economy.
Some of this methods are
1) Pensions of army personnels are not included in defence budget. Instead they come from civilian budget.
2) Aprt from declared budget pakistani budget contains a huge budget under head of contingency fund whic ultimetaly gets
utilised by the army at the end of the year.
3) Pakistan army has many commercial concerns ranging from fertiliser, cement to backery products. This commercial entities
enjoy preferencial governement treatment, favourable policies and in many case monopolised market. This unfair advantages
helps this concers to earn huge profits at cost of the economy and consumers. e.g. to help National Logistic corporation (Owned by military)
Pakistan railway's freight business is destroyed. NLC enjoys monopoly for transporting American goods in and out of Afghanistan.
4) Aids from 3.5 coutries is used to augment budget. 3.5 supplies their surplus weapons to pakistan.
5) Army has aquired huge land for cantonments. Surplus lands are being commercially developed to earn money. Today Pakistan army
is biggest real estate developer in Pakistan.
6) Most of the military aquisition cost are not included in defence budget. They are financed by debt and EMI is paid by government under civilian head.
Salary of Pakistani soldiers are quite low compared to India. But they compensate them in other forms:
1) Pakistan army aquires huge tracts of goverment land in major cities at throwaway prices and gives the plots to retired
soldiers according to their seniority. The price of this allotment is kept very low e.g 5 lakh per plot while the soldies
sells this plot at price of 50 lakhs compensating him for his low salary.
2) Governement gives agriculture land to retired army personnel at the officer ranks. Case in point: High ranking general can get upto 400 acres of agriculture land under different heads.
3) The army wield huge political clout. This can be observed from the fact that most of senior goverment officers, be it in
foreign ministry, irrigation, health or any other ministry are retired army officers. They can accumulate vast wealth using this posts.
For further information you can read Miliraty Inc. by Ayesha Siddiqa or http://www.tehelka.com/it-isnt-easy-to- ... -spending/