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Pakistan military offers to cut defence budget amid severe financial crisis

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Pakistan military offers to cut defence budget amid severe financial crisis

[vc_row][vc_column][vc_column_text]Amid a severe financial crisis in Pakistan, its military, in what media reports dubbed “an unprecedented move”, has voluntarily decided to cut the defence budget before Prime Minister Imran Khan’s government presents its budget for the fiscal year through June 2020 next Tuesday (June 11).

The move comes amid an austerity drive launched by the government to solve the cash-strapped nation’s economic woes, with the country bracing for a raft of belt-tightening measures to address an out-of-control deficit.

Economists warn the government may have to come up with a combined 700 billion rupees ($5 billion) worth of expenditure cuts and new taxes to satisfy the International Monetary Fund (IMF), which is negotiating to loan the country $6 billion over the next three years, said a Reuters report. Pakistan is expected to put in place measures to rein in a ballooning fiscal and current account deficits to get access to the funds.

Without mentioning how much budget cut would be undertaken, Major General Asif Ghafoor, Director General (DG) Inter Services Public Relations (ISPR) – the media wing of the military – in his Twitter message yesterday (Tuesday, June 4) said that voluntary cuts in the defence budget for next fiscal year would not be at the cost of defence and security.

“Voluntary cut in defence budget for a year will not be at the cost of defence & security. We shall maintain effective response potential to all threats. Three services will manage impact of the cut through appropriate internal measures. It was important to participate in development of tribal areas & Balochistan,” Ghafoor said.

Pakistan PM Imran Khan said he was very appreciative of the Pakistan military’s “unprecedented voluntary initiative of stringent cuts in their defence expenditures” in light of the country’s financial situation.

Khan said he was grateful for the move that came “despite multiple security challenges” that Pakistan faces. He said that the funds saved will be used for the development of the newly-merged tribal areas as well as in Balochistan.

Imran Khan, after assuming office last year, launched several austerity measures. He moved into a modest three-bed room house of his military secretary along with two servants. Last month, the government announced that all civil and military institutions would contribute to the austerity-oriented federal budget for 2019-20.

“There will be austerity in the coming budget. We will try to keep government expenditures to the minimum possible level,” Prime Minister’s Adviser on Finance and Economic Affairs Hafeez Shaikh had said.

In 2018, Pakistan was the 20th biggest military spender in the world with an expenditure of USD 11.4 billion, a report published by the Stockholm International Peace Research Institute (Sipri) said in April.

The military spending of 2018 made up for four per cent of Pakistan’s gross domestic product (GDP) which is the highest level since 2004, according to the report by the Sweden-based institute.

The top military spender in the world is the United States, which spent USD 649 billion on its forces last year. The US military spending, however, has decreased by 17 per cent over the past decade, the report said.

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Iranian President Pezeshkian at UN says Iranians have been victims of US terrorism

Iranian President Masoud Pezeshkian said at the UN General Assembly that Iranians had been victims of US terrorism and insisted that Iran had acted in self-defence.

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Iranian President Masoud Pezeshkian accused the United States of subjecting Iranians to what he described as terrorism while addressing the United Nations General Assembly on Wednesday.

Pezeshkian said Iran had defended itself against attacks and rejected the characterisation of the country as a terrorist actor. His remarks came during a rare wartime appearance at the UN as tensions between Iran and the United States remain high.

Pezeshkian accuses US and Israel of attacks

Speaking at the General Assembly, Pezeshkian said Iranian civilians had been targeted by attacks and described the actions against his country as aggression.

“We have only defended ourselves. We are not terrorists,” he said, according to the report.

Pezeshkian also accused the United States and Israel of attacking Iran, while maintaining that Tehran’s response was an act of self-defence.

The Iranian president displayed photographs of former Supreme Leader Ali Khamenei and more than 150 schoolchildren who, according to his account, were killed during the early days of the conflict.

Iran’s message at the UN

Pezeshkian’s address came against the backdrop of the ongoing conflict between Iran and the United States and heightened tensions in the region.

Iranian officials had indicated ahead of the UN visit that they intended to highlight what Tehran considers attacks against its people and raise concerns over the international response to the conflict.

The Iranian delegation’s visit to New York also comes amid restrictions imposed by the United States on the delegation’s movement and other aspects of its stay, according to reporting ahead of the address.

Pezeshkian says Iran defended itself

Pezeshkian’s central message at the UN was that Iran’s military actions should be viewed as a response to attacks rather than terrorism.

His description of the conflict and the allegations against the United States and Israel represent the Iranian government’s position. They should therefore be attributed to Pezeshkian rather than presented as independently established facts.

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PM Modi’s Canada visit could help wrap trade talks, says Canada PM Mark Carney

Canadian PM Mark Carney said he is looking forward to hosting PM Narendra Modi, with both countries aiming to conclude their ongoing trade negotiations.

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Canadian Prime Minister Mark Carney has said he is looking forward to hosting Prime Minister Narendra Modi, as India and Canada continue efforts to advance their bilateral relationship and conclude ongoing trade negotiations.

The two countries have been working towards a Comprehensive Economic Partnership Agreement (CEPA), with both sides previously setting a target to conclude the negotiations in 2026.

Carney and Modi have held discussions on strengthening economic ties between India and Canada, including trade and investment. Their engagement has gained momentum following Carney’s visit to India earlier this year.

India-Canada trade talks

India and Canada formally resumed efforts towards a broader trade agreement after a period of strained bilateral ties. The two sides have committed to advancing negotiations on a CEPA covering their economic relationship.

In June, Carney and Modi reviewed progress in bilateral economic cooperation during their meeting on the sidelines of the G7 Summit in France. They expressed satisfaction with the progress in CEPA negotiations and reaffirmed their shared objective of concluding the talks in 2026.

During Carney’s visit to India in March, the two leaders had also agreed to accelerate negotiations on the CEPA and work towards finalising the agreement during 2026.

Modi’s proposed Canada visit

Carney had invited PM Modi to visit Canada in 2026, and the two leaders agreed to remain engaged through diplomatic channels to work towards a mutually convenient date for the visit.

The proposed visit comes as New Delhi and Ottawa seek to build on renewed diplomatic and economic engagement, with trade negotiations remaining a key part of the relationship.

The focus on completing the trade talks comes as both countries look to expand commercial ties and establish a broader economic framework through the proposed CEPA.

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Trump issues fresh Iran warning at UN General Assembly, signals deal after midterms

US President Donald Trump issued a fresh warning to Iran during his UN General Assembly address, saying he faces a choice between a deal and further escalation.

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US President Donald Trump used his address to the United Nations General Assembly on Tuesday to outline what he described as a major decision over Iran, putting the possibility of a deal against further military escalation.

Speaking at the UN in New York, Trump said he had a “big decision” to make. He questioned whether the United States should pursue an agreement that would allow Iran to rebuild or instead take further action against the Islamic Republic.

Trump later indicated that he believed an agreement with Iran could be reached after the US midterm elections, which are scheduled for November 3.

Trump says deal with Iran remains possible

During his speech, Trump presented two possible paths. He said a deal could allow Iran to rebuild and become a stronger country, while also raising the possibility of destroying the Islamic Republic if an agreement was not reached.

Trump said he believed a deal could eventually be reached, arguing that Iran was waiting to see the outcome of the US midterm elections.

His comments came amid the continuing US-Iran conflict and renewed diplomatic activity surrounding the confrontation. Trump’s UN appearance came as Washington was also engaged in discussions with multiple international leaders over the Iran conflict and other global issues.

Iranian delegation walks out during Trump’s speech

The Iranian delegation reportedly left the General Assembly chamber as Trump began describing the military confrontation with Iran.

According to the report, only one person from the Iranian delegation remained seated as Trump spoke about the conflict and the military strikes of the past six months.

The walkout came as tensions between Washington and Tehran remained high, with both sides facing pressure over the continuation of the conflict.

Trump’s latest warning follows earlier comments

Trump’s UN remarks came days after he said he was approaching a major decision over whether to intensify military action against Iran or pursue another route.

He had also indicated before his UN appearance that he could be open to meeting Iranian President Masoud Pezeshkian during the UN General Assembly in New York.

The possibility of renewed negotiations comes against the backdrop of continuing military and diplomatic tensions between the two countries.

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