The federal budget of Pakistan for the financial year 2024-2025 holds much detail that keen observers can analyze about the country’s strategic priorities. A critical point in this budget is allocating a significant amount toward defence—approximately 2.12 trillion rupees. This is an increase of 17.6% from the previous financial year and amounts to 1.7% of the GDP. On the other hand, national defence accounts for 12.33% of the total expenditures, clearly indicating that national security is a highly valued commodity in the country.
This massive defence investment explains Pakistan’s complex geopolitical reality with neighbors like India and Afghanistan, justifying the need for a very elaborate defence strategy. Perennial tensions and old rivalries with India, along with security concerns due to turmoil in Afghanistan, have compelled Pakistan to strengthen its defence further. This is strategic allocation in consonance with immediate concerns for security and maintaining proper military presence in the region.
In contrast, minimal allocation is made to the education sector. Despite the large-scale public demand for better education infrastructure and reform, it never backs any demands in the education budget. In this constant tussle in Pakistan between priorities for education and several other critical needs, the road toward socioeconomic improvement lies for many countries in today’s world. In any case, the implications of an underfinanced education sector are very far-reaching concerning the socioeconomic development of a country, and this is one of the reasons a well-educated population is required for any country’s long-term growth and innovation. There is no doubt that this, yet again, is another area where the budget is revealingly under considerable colossal challenge.
Most health services are lowly funded, hence acting as an indicator pointing towards the struggle to channel much money into public health. Concerning existing and emerging public health problems, this underfunding is growing since much money will be needed to equip the healthcare system in the coming days. This low level of resource allocation to health indicates the dilemma policymakers must encounter to strike a balance among the country’s needs.
Some of the difficulties are those that the budget, through the use of subsidies and social welfare programs, tries to address. The allocations promise to help protect the vulnerable members of society during the difficult financial period. Social welfare is, therefore, critical as it offers short-term relief during high inflation and unemployment. Attention to social welfare, therefore, is an endeavor to balance the immediate security needs against the long-term goal of social equity. With the support of vulnerable populations, the government can reduce socioeconomic discrepancies that are a solid factor for further destabilization.
Therefore, budgetary allocations unambiguously represent Pakistan’s current priorities and reflect the balancing act that has been taking place to date. Massive investments in defence illustrate the importance of urgent security concerns. At the same time, though, expenditures on education and health are much lower and show areas that need much more attention and resources. This is a discrepancy between the immediate and strategic priorities and the imperfect economic landscape the government has to work in.
It is an essential barometer of national values: it draws a positive light on Pakistan’s concern for defence and social welfare. However, it reflects the imperious urgency of gaining investment in education and healthcare. This is an illustrative hard choice or trade-off with which any developing country must urgently cater to the diverging needs. It is a monumental attempt at balancing security with socioeconomic development; hence, such an attempt is full of challenges.
A closer budget review would find the apparent strategic purpose for defending spending. It is an investment in the augmentation of military power and an extremely potent signal for both home and abroad audiences. This signals Pakistan’s commitment to defend its sovereignty at all costs, ensuring regional stability. Such an investment in defence is like an insurance policy: the country would be prepared for a surprise attack if conflict were to break out.
However, underfunding in education and healthcare points to any country’s structural crisis. The realization that these two need long-term investments and reforms often gets on rocky trails with how the constraints of immediate fiscal policy should be considered in setting priorities. Unwise funding for education is the base of developing a country’s workforce and, therefore, can be left without vitality for economic growth and competitiveness. However, under-investment in healthcare makes a population more vulnerable to diseases and health crises, heavily impeding their productivity and quality of life. The third reason indicates that social welfare programs may signal an understanding of what the most vulnerable populations in society go through. This lays the foundation for social stability, reduction in poverty levels, and lessening inequality. The welfare support works as a cushion; thus, the government can prepare a stage where people and their families can adapt themselves to these challenging economic situations.
Finally, the Pakistan FY 2024-25 budget reflects the country’s priorities. It indicates a strong urge to allocate gigantic amounts of spending to defence in the context of national security and, simultaneously, a struggle to try and finance education and healthcare. The inclusion of subsidies and social welfare programs is an attempt to balance immediate security needs with the long-term goal of social equity. These demanding economic times capture this budget and the difficult decisions the government has to make in trying to balance the various national interests. It, therefore, emphasizes the strategic allocation of resources to carve out a future course for Pakistan that ensures the country’s security and socioeconomic development in the context of a composite, complex world imbued with its dynamism.
The post Pakistan’s Budget: A Mirror To National Priorities – OpEd first appeared on The South Caucasus News.