Pakistan

             In our analysis of Pakistan's defence expenditure over the last 56 years, we have divided them into six regimes.
             First regime 1947-1958.
             Defence spending, including capital account expenditures rose almost steadily from Rs. 531 million in 1948-9 to peak of Rs. 990 million in 1952-3 before being cut back to Rs. 713 million in 1954-5 as international recession seriously reduced Pakistan's foreign exchange earnings and government revenues. During the years, 1948-9 to 1954-5 defence absorbed well over two-thirds of the central government's revenues.
             1948-9 to 1949-1950 1950-1 to 1954-5 1955-56 to 1958-9.
             Central Govt. Revenue 776.5.
             (3.8) 1562.7.
             (5.8) 1267.8.
             (5.8).
             Defence expenditure 664.5.
             (3.2) 822.
             (3.8) 819.7.
             (3.1).
             Development.
             Expenditure 261.5.
             (1.3) 449.8.
             (2.1) 939.2.
             (3.5).
             Fixed investment (2.8) (4.7) (9.3).
             Growth Rate of GDP 2.5% 2.7% 2.4%.
             In the first few years after the partition, defence spending was equal to 85 percent of Central Government's revenues. In the first half of the 1950s, defence expenditures exceeded development spending by a wide margin. With inadequate allocation of 2.1% for development as against 3.8% for defence in the first half of 1950s and its implications for the maintenance of existing and building new infrastructure, the growth rate came down from 2.7% to 2.4% in the latter half of 1950s. Notwithstanding the priority given to defence in the early years, the fixed investment rate in Pakistan increased sharply from 3 percent of GDP in 1949-50 to 9 percent by end of the decade in 1958-9.
             Ayub khans.
             1960-5.
             Actual 1965-70.
             Planed 1965-70.
             Actual.
             Defence spending 5.50.
             (2.8) 6.89.
             (2.2) 12.38.
             (4.0).
             Development spending 13.95.
             (7.1) 30.00.
             (9.8) 21.75.
             (7.1).
             Real investment (21.5) (20.00) (14.6).
             Growth.
             West Pakistan.
             East Pakistan.
             Over all (2.8).
             5.8% per annum (4.7).
             7.0% per annum (9.3).
             6.7% per annum.
             4.0% per annum.
             5.6% per annum.
             At the end of 1960s, the investment rate in West Pakistan was considerably higher than it was a decade earlier, but substantially below the peak in 1964-5.