Pakistan increases defense expenditure despite financial crunch; Military relations between US and China improving
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    • According to reports, Pakistan has hiked its defence budget by nearly 12 per cent to Rs 495 billion (about USD 5.75 billion) for fiscal 2011-12, despite the severe financial crunch facing the country. Official budget documents presented in Parliament on Friday said defence spending will increase to Rs 495 billion for 2011-12, compared with Rs 442 billion in the fiscal year ending June 30. An allocation of Rs 22,000 million was made for the Pakistan Atomic Energy Commission under the Public Sector Development Programme, budget documents said. The Pakistan government has traditionally made defence allocations with the objective of maintaining conventional parity with India.1

    In an important development, The US and Chinese defence chiefs noted that military relations between the two countries had made some progress and were moving in a "positive" direction. At a meeting in Singapore, US Defence Secretary Robert Gates stated, "As I leave office at the end of this month, I do so believing our military relationship is on a more positive trajectory," who is wrapping up his tenure at the Pentagon. Sitting across a table from the Pentagon chief, Gates’ Chinese counterpart, Defence Minister Liang Guanglie said there had been "some progress" in recent months and praised efforts by both countries to lay the groundwork for better security ties. The conciliatory tone follows tentative signs that tensions were easing, with a top Chinese general touring US bases last month and Gates paying a visit to Beijing in January. However, US arms sales to Taiwan have been a major irritant, and China has suspended ties whenever Washington announces new weapons deals. Despite the positive comments at Friday’s talks, the issue could once again scupper attempts to forge a dialogue as US senators are pushing to sell F-16 fighter jets to Taiwan.2

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