Haq's Musings

Riaz Haq writes this data-driven blog to provide information, express his opinions and make comments on many topics. Subjects include personal activities, education, South Asia, South Asian community, regional and international affairs and US politics to financial markets. For investors interested in South Asia, Riaz has another blog called South Asia Investor at http://www.southasiainvestor.com and a YouTube video channel https://www.youtube.com/channel/UCkrIDyFbC9N9evXYb9cA_gQ

Showing posts with label Defense. Show all posts

Wednesday, October 29, 2025

Pakistan's Rising Arms Sales to Developing Nations

Pakistan is emerging as a major arms supplier to developing countries in Asia and Africa. Azerbaijan, Myanmar, Nigeria and Sudan have all made significant arms purchases from Pakistan in recent years. Azerbaijan expanded its order for JF-17 Thunder Block III multi-role fighter jets from Pakistan from 16 to 40 aircraft. The recent order extends a 2024 contract worth $1.6 billion to modernize Baku’s airborne combat fleet to $4.6 billion. This makes Azerbaijan the largest export customer of the Pakistan-made warplane. Bangladesh is negotiating purchase of up to 32 JF-17 Thunder Block III aircraft from Pakistan.

Pakistan PFX Concept Fighter. Source: Raksha Anirveda

In Africa, Pakistan has recently signed a $1.5 billion contract to supply combat drones and military trainer aircraft. The order includes 150 armored vehicles, 220 drones and 10 K-8 Karakorum trainer/light attack aircraft. Earlier in 2021, Pakistan sold three JF-17 Thunder fighter jets and ten Super Mushshak trainer aircraft to Nigeria in a deal worth nearly $200 million. From 2018 to 2021, Pakistan sold 11 JF-17 Thunder Block I aircraft to Myanmar.

Air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of combat-tested Pakistan manufactured airplanes include advanced BVR (beyond visual range) features, affordability and ease of acquisition, maintenance and training.

Pakistan started developing defense hardware for import substitution to reduce external dependence and to save hard currency. Now the country's defense industry is coming of age to lead the way to high value-added manufactured exports.

Pakistan has unveiled its PFX (Pakistan Fighter Experimental) program as a significant upgrade to its JF-17 joint program with China. The new upgrade will have a number of stealth features ranging from the use of radar-absorbing composite materials and diverterless supersonic inlets (DSI) to internal weapons bay (IWB) which will significantly reduce the aircraft's radar signature. It is targeted for completion by the end of this decade. In addition, the PFX's twin-engine design will improve maneuverability and allow greater payload capacity.

The program is part of Pakistan's broader strategy to reduce reliance on foreign suppliers and strengthen the domestic defense industry. Currently, 58% of JF-17 components are manufactured locally by PAC, but Pakistan aims to increase this share to achieve full production autonomy for the PFX. It is not just about the PAF modernization but also about positioning Pakistan as an important player in the global military aviation market.

The PFX is an evolution of a plan that Pakistan announced in 2017 to develop and produce 5th generation fighter planes. It is part of Pakistan Air Force's highly ambitious Project Azm that includes building Kamra Aviation City dedicated to education, research and development and manufacturing of advanced fighter jets, unmanned aerial vehicles (UAVs) and weapon systems.

The PAF has already started replacing its aging fleet with the induction of the Chinese J10C fighter jets which are considered 4.5 Gen. The J10-C has stealth features like diverterless supersonic inlets (DSI). Its BVR capability is supported by PL-15 missiles, with an engagement range of up to 200 kilometers, facilitating long-range target engagements.

The PAF has also begun the process of acquiring 5th generation Chinese J35 fighter jets. The delivery of 40 J35 fighters to Pakistan is expected within two years, potentially altering regional dynamics, particularly concerning India.

Sunday, August 25, 2024

Following the Money: Insights into Pakistan's Budget 2024-25

A look at Pakistan's current fiscal year 2024-25 budget helps gain insights into how the country is run. It shows the money flows from the key sources of revenue and the nation's spending priorities. Total planned federal spending for the current fiscal year is Rs.18,900 billion (about 69 billion U.S. dollars). This figure does not include the transfer of Rs. 7,438 (US$ 26 billion) from the federal government to the provinces. Under the 18th amendment passed in 2010, the federal government is obligated to share 57.5% of its revenue with the provinces. The federal government is primarily responsible for defense, foreign affairs, debt servicing, foreign trade, ports and shipping, and development programs, while food and agriculture, education, healthcare and housing are devolved to the provinces. There still appears to be some overlap of domestic responsibilities between the federation and the provinces.

Pakistan's Budget 2024-25 at a Glance. Visualization Courtesy of Prof Adil Najam

The federal government's total revenue is expected to be Rs. 17, 815 billion (US$ 65 billion). In addition, Islamabad plans to borrow Rs. 8,470 billion ($31 billion) during the fiscal year. Interest payments of Rs. 9,775 billion ($ 36 billion) will account for more than half of the federal budget this year. Debt servicing costs will also exceed the planned borrowing (of Rs. 8,470 billion) for the year. In other words, all of what the government plans to borrow this fiscal year will be used to service the current debt on the books.

Detailed Budget Visualization By Dr. Adil Najam via Dawn

Federal debt servicing costs (Rs. 9,775 billion or $35 billion, 9.3% of current GDP) have spiked in recent years due to the State Bank's tight monetary policy designed to fight persistent double digit inflation. In fact, interest payments on debt are by far the biggest single federal expenditure line item, far surpassing the Rs. 2, 122 billion ($7.7 billion or 2% of current GDP) defense spending. Higher interest rates have also dramatically slowed down the economy.

Pakistani provinces raise some of their own revenue on top of the transfers from the federal government. For example, Punjab, the largest of the four provinces, plans to spend an estimated Rs. 4,643.4 billion ($17 billion); including the federal transfer of Rs. 3,683.1 billion and about Rs. 960 billion ($3.5 billion) of provincial tax revenue.

Sind, the second largest province, has a Rs. 3,056 ($11 billion) budget that includes Rs. 1,854 billion from the federal government, and Rs. 1,202 billion ($4.35 billion) from its revenue sources. KP, the third largest province, has a Rs1,754 billion ($6.4 billion) budget, including Rs. 1,222 billion from the federal government and Rs. 532 billion ($1.9 billion) provincial revenue. Balochistan's budget is Rs. 956 billion ($3.5 billion) that includes Rs. 667 billion from the federal government and Rs. 290 billion ($1 billion) from its resources.

Altogether, the federal and provincial governments expect to raise about $75 billion in revenue, representing 20% of $375 billion GDP for fiscal year 2023-24. This is not bad for a developing country like Pakistan. The defense allocation of Rs. 2,122, the second largest federal expenditure, is a mere 2% of the current GDP. The biggest expenditure this year will be the interest payments of Rs. 9,775, accounting for over 50% of the federal budget and 9.3% of the current GDP. These debt servicing costs will hopefully come down as the State Bank cuts its interest rates this year and next. Lower interest payments in future years should free up money for other more pressing needs in the areas of education, healthcare, energy and infrastructure.

Friday, September 4, 2020

Defense of Pakistan Day: Has Pakistan Lost All Wars to India?

As the South Asian nation of 220 million celebrates Defense of Pakistan Day, it is a good time to ask: Has Pakistan lost all wars to India? Indian defense analyst Pravin Sawhney says NO! In fact, Sawhney argues that Pakistan has never lost to India. Not in 1965, nor in 1971 nor Kargil!! Who is Pravin Sawhney? What makes him an authority on such matters?

Pakistan JF-17s Flying National Colors on Defense of Pakistan Day

Who is Pravin Sawhney?

Pravin Sawhney is a retired Indian Army officer who currently publishes "FORCE" magazine, along with Ghazala Wahab. Both deal with defense matters. Here's how FORCE introduces Pravin Sawhney:

"An author of two books, The Defence Makeover: Ten Myths That Shape India’s Image and Operation Parakram: The War Unfinished, a widely circulated monograph, Ballistic Missile Imperatives Between India And Pakistan, which he co-authored with Pakistani scholar Nazir Kamal at Sandia National Laboratories, Albuquerque, US, Pravin writes on strategic, defence and foreign policy issues. He also writes a monthly column, Bottomline in FORCE. Before starting FORCE, Pravin was the South Asia correspondent based in New Delhi with Jane’s International Defence Review, Jane’s Information Group, Surrey (UK) for six years. Taking premature retirement from the Indian Army (artillery), Pravin started his journalistic career with Business and Political Observer newspaper from where he moved on to the Times of India and Indian Express newspapers, finally leaving defence reporting in 1996 as defence editor, The Asian Age. He has also been a visiting fellow at the Royal United Services Institute, Whitehall, London, UK and a visiting scholar at Sandia National Laboratories, Albuquerque, US."

What Does Sawhney Say About India-Pakistan Conflict:

In an interview with Pakistani journalist Israr Kasana that was published on YouTube on June 3, 2020, Pravin asserted that "Pakistan has never lost (to India) in any war, be it 1965 or 1971 or any other." "If Pakistan had lost, there would be no line-of-control or ceasefire line on the ground," he added. Here's more from that interview:

"If Pakistan had lost we (India) would have erased the LOC...why do I say that? I have explained it in my book. Pakistan has been strong in the western sector. It's a myth that Pakistan is weak, a myth that Pakistan itself perpetrates...India says we (India) are strong when in fact it is not.....CPEC is extremely important...China will share a lot of military capability with Pakistan....China shares platforms and assures unlimited supply of spare parts which is crucial in war...China and Pakistan do frequent joint military exercises...to assure interoperability.

Pakistan Air Force fleet : JF-17 (Dragon) top, F-16 (Aggressor) middle and Mirage 3 (Sky Bolt) bottom.

What Has Sawhney Said About Balakot?

After the February 2019 conflict triggered by India's bombing in Balakot in Pakistan, Sawhney argued that India’s conventional deterrence has been compromised. India's war-fighting capabilities – pivoted on air power – have been blunted without a fight. Meanwhile, Pakistan maintained credibility of both its first combined civil-military government and its air power.

Sawhney said, "Pakistan was faced with the dilemma of how to avenge India’s unprecedented action: to use or not to use the PAF. It was decided that the PAF too would breach Indian airspace while calling it a non-military strike. Unlike the IAF, the PAF strike would be done with menacing force in broad daylight ensuring that Indian military installations close to the Line of Control were not damaged enough to compel India to raise the ante."

Here's Pravin Sawhney talking about February 2019 action:'
'
https://youtu.be/YX4qXrR34PI

Related Links:

Haq's Musings

South Asia Investor Review

Is India a Paper Elephant?

CPEC & Digital BRI

Pakistan's National Resilience, Success Against COVID19

China-Pakistan Defense Production Collaboration Irks West

Balakot and Kashmir: Fact Checkers Expose Indian Lies

Is Pakistan Ready for War with India?

Pakistan-Made Airplanes Lead Nation's Defense Exports

Modi's Blunders and Delusions

India's Israel Envy: What If Modi Attacks Pakistan?

Project Azm: Pakistan to Develop 5th Generation Fighter Jet

Pakistan Navy Modernization

Pakistan's Sea-Based Second Strike Capability

Who Won the 1965 War? India or Pakistan?

Pakistani Military's Performance in 1971 War

Riaz Haq's Youtube Channel

PakAlumni Social Network

Tuesday, November 21, 2017

Pakistan's Total Education Spending Surpasses its Defense Budget

Pakistan's public spending on education has more than doubled since 2010 to reach $8.6 billion a year in 2017, rivaling defense spending of $8.7 billion. Private spending on education by parents is even higher than the public spending with the total adding up to nearly 6% of GDP. Pakistan has 1.7 million teachers, nearly three times the number of soldiers currently serving in the country's armed forces. Unfortunately, the education outcomes do not yet reflect the big increases in spending. Why is it? Let's examine this in some detail.

Pakistan Education Budget:

The total money budgeted for education by the governments at the federal and provincial levels has increased from Rs. 304 billion in 2010-11 to Rs. 790 billion in 2016-17, representing an average of 17.5% increase per year since 2010.

Source: Dawn Newspaper

Private Education Spending in Pakistan:

2012 Data from UNESCO and the World Bank shows that the private spending on education is about twice as much as the monies budgeted by federal and provincial governments in Pakistan.

Private/Public Spending on Education in Selected Countries. Source: Economist

Education Outcomes:

UNESCO and World Bank data from 2013 shows that only 52% of Pakistani kids and 48% of Indian kids reached expected standard of reading after 4 years of school, according to the Economist Magazine. It also shows that 46% of Pakistani children dropped out of school before completing 4 years of education.

Reading Performance in Selected Countries. Source: Economist

Education and Literacy Rates:

Pakistan's net primary enrollment rose from 42% in 2001-2002 to 57% in 2008-9 during Musharraf years. It has been essentially flat at 57% since 2009 under PPP and PML(N) governments.

Source: Economic Survey of Pakistan 2015-16

Similarly, the literacy rate for Pakistan 10 years or older rose from 45% in 2001-2002 to 56% in 2007-2008 during Musharraf years. It has increased just 4% to 60% since 2009-2010 under PPP and PML(N) governments.

Source: Economic Survey of Pakistan 2015-16

Pakistan's Human Development:

Human development index reports on Pakistan released by UNDP confirm the ESP 2015 human development trends.Pakistan’s HDI value for 2013 is 0.537— which is in the low human development category—positioning the country at 146 out of 187 countries and territories. Between 1980 and 2013, Pakistan’s HDI value increased from 0.356 to 0.537, an increase of 50.7 percent or an average annual increase of about 1.25.

Pakistan HDI Components Trend 1980-2013 Source: Human Development Report 2014

Overall, Pakistan's human development score rose by 18.9% during Musharraf years and increased just 3.4% under elected leadership since 2008. The news on the human development front got even worse in the last three years, with HDI growth slowing down as low as 0.59% — a paltry average annual increase of under 0.20 per cent.

Going further back to the decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP, the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.

Bogus Teachers in Sindh:

In 2014, Sindh's provincial education minister Nisar Ahmed Khuhro said that "a large number of fake appointments were made in the education department during the previous tenure of the PPP government" when the ministry was headed by Khuhru's predecessor PPP's Peer Mazhar ul Haq. Khuhro was quoted by Dawn newspaper as saying that "a large number of bogus appointments of teaching and non-teaching staff had been made beyond the sanctioned strength" and without completing legal formalities as laid down in the recruitment rules by former directors of school education Karachi in connivance with district officers during 2012–13.

Ghost Schools in Balochistan:

In 2016, Balochistan province's education minister Abdur Rahim Ziaratwal was quoted by Express Tribune newspaper as telling his provincial legislature that “about 900 ghost schools have been detected with 300,000 fake registrations of students, and out of 60,000, 15,000 teachers’ records are unknown.”

Absentee Teachers in Punjab:

A 2013 study conducted in public schools in Bhawalnagar district of Punjab found that 27.5% of the teachers are absent from classrooms from 1 to 5 days a month while 3.75% are absent more than 10 days a month. The absentee rate in the district's private schools was significantly lower. Another study by an NGO Alif Ailan conducted in Gujaranwala and Narowal reported that "teacher absenteeism has been one of the key impediments to an effective and working education apparatus."

Political Patronage:

Pakistani civilian rule has been characterized by a system of political patronage that doles out money and jobs to political party supporters at the expense of the rest of the population. Public sector jobs, including those in education and health care sectors, are part of this patronage system that was described by Pakistani economist Dr. Mahbub ul Haq, the man credited with the development of United Nation's Human Development Index (HDI) as follows:

"...every time a new political government comes in they have to distribute huge amounts of state money and jobs as rewards to politicians who have supported them, and short term populist measures to try to convince the people that their election promises meant something, which leaves nothing for long-term development. As far as development is concerned, our system has all the worst features of oligarchy and democracy put together."

Summary:

Education spending in Pakistan has increased at an annual average rate of 17.5% since 2010. It has more than doubled since 2010 to reach $8.6 billion a year in 2017, rivaling defense spending of $8.7 billion. Private spending by parents is even higher than the public spending with the total adding up to nearly 6% of GDP. Pakistan has 1.7 million teachers, nearly three times the number of soldiers currently serving in the country's armed forces. However, the school enrollment and literacy rates have remained flat and the human development indices are stuck in neutral. This is in sharp contrast to the significant improvements in outcomes from increased education spending seen during Musharraf years in 2001-2008. An examination of the causes shows that the corrupt system of political patronage tops the list. This system jeopardizes the future of the country by producing ghost teacher, ghost schools and absentee staff to siphon off the money allocated for children's education. Pakistani leaders need to reflect on this fact and try and protect education from the corrosive system of political patronage networks.

Related Links:

Haq's Musings

History of Literacy in Pakistan

Reading and Math Performance in Pakistan vs India

Myths and Facts on Out-of-School Children

Who's Better For Pakistan's Human Development? Musharraf or Politicians?

Corrosive Effects of Pakistan's System of Political Patronage

Development of Pakistan's Human Capital

Asian Tigers Brought Prosperity; Democracy Followed

Musharraf Accelerated Growth of Pakistan's Human and Financial Capital

Monday, December 12, 2016

India's War Budget to Be World's 3rd Biggest Despite High Poverty

In 2016, India surpassed Saudi Arabia and Russia to claim the 4th spot among the top five defense spenders globally for the first time, according to Jane's Defense. India, a country with 33% of the world's poor, is projected to surpass the United Kingdom to rise to the 3rd spot for defense spending by 2018.

Sources: FT/IHS Jane's (Defense Budgets) and World Bank (Poverty)

India's military spending has grown rapidly from $38.17 billion in 2010 to $50.7 billion in 2016. It is projected to rise further to $56.5 billion in 2018 and $64.07 billion in 2020, according to Jane's. For comparison, India's south Asian neighbor Pakistan's defense budget for 2016 is only $8 billion.

India's rapid rise to the list of world's top defense spenders stands in sharp contrast to the reality that it remains home to the world's largest population of poor, hungry and illiterate citizens. India also leads the world for lack of hygiene, disease burdens and open defecation.

Prime Minister Narendra Modi's rule has seen dramatic growth of wealth inequality in India. Top 1% of Indians now own 58.4% of India's wealth, up from 49% in 2014 when Mr. Modi was elected Prime Minister, according to Credit Suisse Global Wealth Report 2016.

Median wealth data compiled by Credit Suisse for 2016 shows that average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistan has grown 2.1% while it has declined 0.8% in India since the end of last year.

CS Wealth Report 2016 indicates that 50% of Pakistanis own more than $1,180 per adult which is 120% more than the $608 per adult owned by 50% of Indians.

The Credit-Suisse report says that the richest 1% of Indians own 58.4% of India's wealth, second only to Russia's at 74.5%. That makes India the 2nd biggest oligarchy in the world.

The CS wealth data, particularly the median wealth figures, clearly show that Pakistan has much lower levels of inequality than India.

Share of World's Poor Population By Countries Source: Our World in Data

Oxford Poverty and Human Development Initiative (OPHI)'s MPI, multi-dimensional poverty index, brings together 10 indicators, with equal weighting for education, health and living standards. In South Asia region, Afghanistan has the highest level of destitution at 38%, according to OPHI's MPI index. This is followed by India at 28.5%. Bangladesh (17.2%) and Pakistan (20.7%) have much lower levels.

Rapid growth in India's defense expenditures conveys Prime Minister Modi's priorities. It seems that he believes the way for India to achieve great power status is through building a massive military regardless of the deep deprivations of the Indian people.

Mr. Modi's massive military buildup poses a serious threat to India's neighbors, particularly Pakistan, a much smaller country which was invaded and split in two by the Indian military in 1971. The Indian invasion resulted in the creation of Bangladesh.

Related Links:

Haq's Musings

Credit Suisse Global Wealth Report 2016

India Massive Military Buildup

Modi's Israel Envy

India Home to World's Largest Population of Poor, Hungry & Illiterates

India Leads the World in Open Defecation

MPI Captures Depth of Deprivation in India

Sunday, December 11, 2016

Pakistan Made Airplanes Lead Nation's Defense Exports

Air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of Pakistan manufactured airplanes range from lower cost to ease of acquisition, maintenance and training.

Pakistan's Aircraft Exports:

Pakistan started developing defense hardware for imports substitution to reduce external dependence and to save hard currency. Now the country's defense industry is coming of age to lead the way to high value-added manufactured exports.

Pakistan Super Mushshak Trainer Aircraft

Nigerian Air Force is the latest to announce purchase of Pakistan made Super Mushshak aircraft after the United States' refusal to sell to Nigeria, according to American periodical Newsweek. Nigerian Air Force chief Air Marshal Sadique Abubakar was quoted by the Nigerian media as saying that "Pakistan has accepted to sell ten trainer airplanes. And that is why the Pakistan Chief of Air Staff is coming for the induction ceremony which is going to take place in Kaduna".

Several other countries are in the process of making decisions to purchase aircraft from Pakistan. A report in Pakistan's Express Tribune newspaper says that Turkey has decided to buy 52 Super Mushshak trainer aircraft. The Tribune also reported that Azerbaijan may buy a couple of dozen JF-17 Thunder fighter jets jointly developed by Pakistan and China.

Along with exporting existing hardware, Pakistan is continuing its efforts to enhance the capabilities with new versions. For example, fighter-jet JF-17’s Block III is expected to open up new opportunities for Pakistani defense exports.

The new JF-17 Block III will be a twin-seat trainer version with advanced Active Electronically-Scanned Array radar and mid-air-refueliling probe. It will use new composite materials to increase its performance, besides addition of other updates in cockpit and weapons’ pods, according to Pakistani media reports.

Pakistan-China Defense Industry Collaboration:

Growing defense collaboration between China and Pakistan irks the West, according to a report in the UK's Financial Times newspaper. The paper specifically cites joint JF-17 Thunder fighter jet, armed drone Burraq and custom AIP-equipped submarines as examples of close cooperation between the two nations.

Pakistan's JF-17 Jet Fighter

Pakistan's bitter experience with the unreliability of its cold war allies as weapons suppliers has proved to be a blessing in disguise. It has forced Pakistan to move toward self-reliance in production of the weapons it needs to defend itself from foreign and domestic enemies.

It all started back in 1965 when the US and its western allies placed an arms embargo on Pakistan during war with India. The bitterness grew stronger when the US forced France to cancel its contract to supply a breeder reactor to Pakistan in 1974 soon after India conducted its first nuclear test.

Khushab Nuclear Reactor:

Fortunately for Pakistan, the French had already given Pakistanis scientists drawings and specifications before canceling the breeder reactor contract. Work on Khushab reprocessing plant stated in 1974 when Pakistan signed a contract with the French company Saint-Gobain Techniques Nouvelles (SGN). In 1978, under U.S. pressure, France canceled the contract. Pakistan then proceeded to indigenously produce its own nuclear breeder reactors at Khushab. Four such reactors are now operating to produce plutonium for Pakistan's nuclear weapons program. Having done its first nuclear test in 1998, Pakistan now has a large and growing nuclear arsenal it needs to deter any enemy adventurism against it.

Babar Cruise Missile:

Since MTCR (Missile Technology Control Regime) prevented Pakistan from acquiring delivery vehicles from other countries, the country had to develop its own ballistic and cruise missiles to carry nuclear weapons.

The story of Babar Cruise Missile development is particularly interesting. It is believed that Pakistani engineers learned the technology by dismantling and studying a US Tomahawk cruise missile that fell in Pakistani territory when President Bill Clinton fired these missiles to target Al Qaeda in Afghanistan.

JF-17 Thunder Fighter:

The development of JF-17, a modern highly capable and relatively inexpensive fighter jet, is the crowning achievement to-date of the Pakistan-China defense production cooperation. It's being deployed by Pakistan Air Force with Pakistan Aeronautical Complex (PAC) on recently rolling out the 16th Block 2 JF-17 aircraft for PAF's 4th squadron. The latest version is capable of launching a variety of nuclear and conventional weapons ranging from smart bombs and air-launched cruise missile Raad to anti-ship missiles.

Pakistan Aeronautical Complex (PAC) got its start decades ago by setting up maintenance facilities for advanced fighters like French Mirage and US F-16s and by manufacturing Mushshak and Super Mushshak trainer aircraft. It is now also building JF-17s as well as a variety of drones, including combat UAV Burraq being used in Pakistan's war against militants in Waziristan.

Nuclear-Capable AIP Submarines:

Pakistan is expanding and modernizing its underwater fleet with 8 additional AIP-equipped submarines. Four of these subs will be manufactured in Pakistan. These will reportedly be custom versions of Yuan class diesel-electric subs with additional wider tubes from which cruise missiles can be launched. A key requirement for these submarines is to be stealthy—and the AIP-equipped Yuan class is indeed very quiet. The trick is in the submarine’s air-independent propulsion fuel cells, which provide power under the surface as the diesel engines—used for running on the surface—rest and recharge. Though relatively limited in range, this system is quieter than the nuclear-powered engines on American and Russian submarines, which must constantly circulate engine coolant.

Arms as Pakistan's Cottage Industry

Pakistan has a long history of arms manufacturing as a cottage industry. The dusty little town of Darra Adam Khel, only a half-hour drive from Peshawar, reminds visitors of America's Wild West. The craftsmen of this town are manufacturers and suppliers of small arms to the tribal residents of the nation's Federally Administered Tribal Areas who carry weapons as part of their ancient culture. The skilled craftsmen of FATA make revolvers, automatic pistols, shotguns and AK-47 rifles. Until five years ago, the list also had items such as anti-personnel mines, sub-machine guns, small cannons and even rocket launchers. Pakistani government has forced the tribesmen to stop making heavy assault weapons to try and prevent the Taliban and Al Qaeda from getting access to such weapons.

Pakistan's arms industry has come a long way from making small arms as a cottage industry in the last few decades. The US and Western arms embargoes imposed on Pakistan at critical moments in its history have proved to be a blessing in disguise. In particular, the problems Pakistan faced in the aftermath of Pressler Amendment in 1992 became an opportunity for the country to rely on indigenous development and production of defense equipment.

Pakistan's Military Industrial Complex

The country now boasts a powerful industrial, technological and research base developing and manufacturing for its armed forces a wide variety of small and large weapons ranging from modern fighter jets, battle tanks, armored vehicles, frigates and submarines to armed and unarmed aerial vehicles and high tech firearms and personal grenade launchers for urban combat. Some of these items were on display at IDEAS 2014, the 5-day biennial arms show held November 2014 in Karachi, Pakistan.

Summary:

A country can not be truly independent unless it can manufacture the arms it needs to defend itself. Pakistan is just starting to build the weapons it needs but it has a very long way to go. At the same time, Pakistan is starting to export defense hardware to developing nations. This goal can only be achieved if Pakistan develops significant human capital and builds a vibrant economy.

Related Links:

Haq's Musings

Pakistan-China Defense Industry Collaboration Irks West

Pakistan Navy Modernization

IDEAS 2014 Arms Show

Pakistan Defense Industry

Silicon Valley Book Launch of "Eating Grass"

Pakistan's Human Capital

Pakistan Economy Nears Trillion Dollars

Pakistan's Sea-Based Second Strike Capability

Friday, December 5, 2014

IDEAS 2014: Pakistan's Biggest Ever Arms Bazar in Karachi

International Defense Exhibition and Seminar (IDEAS), Pakistan biannual arms show, made a modest beginning in year 2000 on President Musharraf's directive. It has since grown into a major international event with hundreds of exhibitors and delegates attending from several dozen countries. It has also served to help highlight and promote Pakistan's domestic defense industry and sign several arms export deals with friendly nations.

The just concluded IDEAS 2014 attracted 333 defense-related companies including 50 companies from Pakistan. Delegates from 50 countries attended the show this year.

The fact that Pakistan is the third largest importer of arms in the world is not lost on major arms merchants. World's top arms importer is India with 14% market share followed by China and Pakistan with 5% each, according to Stockholm-based SIPRI.

International Arms Market Source: SIPRI

While Pakistan's traditional allies China and Turkey were the biggest exhibitors occupying the largest space at the show, the most notable new entrant this year was Russia, the biggest arms supplier to Pakistan's arch-rival India. Russian defense minister visited Pakistan and agreed to sell Mi-35 attack helicopters. There was also a report in IHS Jane's 360 publication that, under a new Pakistan-Russia defense cooperation agreement, Russia will now directly supply RD-93 Klimov jet engine for JF-17 fighter aircraft jointly developed by China and Pakistan.

While the JF-17 was the star of the show for Pakistan, other major Pakistan-made attractions included smart-bomb named Takbir, a high-tech weapon system POF Eye, and new drones Burraq and Shahpar and trainer aircraft Mushshaq and Super Mushshaq. There were also armored car manufacturers catering to rising domestic demand fueled by security concerns in Pakistan.

Pakistan-made Takbir ‪ is a 250 Kg air-launched smart bomb that can accurately hit target 80-100 km away. It expands its wings as soon as it is launched and makes its way while dodging the hurdles in its way to hit its intended target.

Pakistan-made POF Eye is a special-purpose hand-held weapon system similar in concept to the Israeli-made CornerShot that can fire weapons (bullets, hand-grenades) around corners. It is designed for SWAT and special forces teams in hostile situations, particularly counter-terrorism and hostage rescue operations. It allows its operator to both see and attack an armed target without exposing the operator to counter-attack.

Pakistani officials claim having closed several arms export deals to sell different weapon systems, including agreements with four Middle Eastern and African countries for the sale of one JF-17 squadron each.

Here's a video discussion on multiple subjects including Karachi Defense Show:

PTI Plans; Junaid Jamshed Blasphemy; Modi Minister's Attack on Non-Hindus; Pak Defense Expo from WBT TV on Vimeo.

Wednesday, May 12, 2010

Soaring Chinese Imports and Twin Deficits Worry India

India is continuing to run large current account and trade deficits. India's trade deficit was an estimated $86.6 billion in April- January 2009-2010, according to media reports. The Reserve Bank of India said the nation's current account deficit widened to $29.8 billion in fiscal 2009, compared with a deficit of $17 billion in prior year.

The nation’s capital account continued to be negative for the second quarter in a row. The gauge of investment flows into and out of the country showed a shortfall of $4.44 billion in the three months to 31 March, compared with a net inflow of $26.5 billion a year earlier, RBI said.

India's government has sent letters to the country's telecom companies ordering them not to buy equipment from Huawei, ZTE, and several other Chinese companies due to security risks, according to a report in Businessweek. A few weeks ago, the Wall Street Journal reported that there was a similar move by Delhi to limit China's growing role in building India's power sector.

Growing Chinese Imports:
India's imports from China expanded 19 per cent and stood at US$ 32.49 billion in 2008-09, while exports were at US$ 9.35 billion. India's trade deficit with China is expected to grow larger this year, a trend India considers alarming given the nature of imports that go into India's essential infrastructure of power generation and telecommunications networks.

Power Sector:

Chinese are now supplying equipment for about 25% of the new generating capacity India is adding to its national grid, up from almost nothing a few years ago. There are thousands of skilled Chinese expatriates at Indian plant sites, along with Chinese chefs, Chinese television and ping pong.

Telecom Sector:
India is already the biggest export market for China's two leading telecom equipment manufacturers, Huawei Technologies and ZTE, as both companies have focused on India in recent years. As India has grown to the world's No. 2 mobile phone market in recent years, its imports of Chinese handsets have soared.

Unlike China, India lacks the necessary industrial and manufacturing base for greater self reliance in infrastructure equipment and defense armaments. India also runs large current account deficits while China is enjoying large surpluses strengthening its economic position in the world.

Defense Equipment:
India is overwhelmingly dependent on foreign imports, mainly Russian and Israeli, for about 70 per cent of its defense requirement, especially for critical military products and high-end defense technology, according to an Indian defense analyst Dinesh Kumar. Kumar adds that "India’s defense ministry officially admits to attaining only 30 to 35 per cent self-reliance capability for its defense requirement. But even this figure is suspect given that India’s self-reliance mostly accrues from transfer of technology, license production and foreign consultancy despite considerable investment in time and money".

On the same theme, Russian newspaper Kommersant reported that "India has had little success with military equipment production, and has had problems producing Russian Su-30MKI fighter jets and T-90S tanks, English Hawk training jets and French Scorpene submarines."

On India's perennial dependence on imports, here's how blogger Vijainder Thakur sees India's loose meaning of "indigenous" Smerch and other imports:

"The Russians will come here set up the plant for us and supply the critical manufacturing machinery. Indian labor and technical management will run the plant which will simply assemble the system. Critical components and the solid propellant rocket motor fuel will still come from Perm Powder Mill. However, bureaucrats in New Delhi and the nation as a whole will be happy. The Smerch system will be proudly paraded on Rajpath every republic day as an indigenous weapon system.

A decade or so down the line, Smerch will get outdated and India will negotiate a new deal with Russia for the license production of a new multiple rocket system for the Indian Army.

China will by then have developed its own follow up system besides having used the solid propellant motors to develop other weapon systems and assist its space research program."

India does export some armaments but its modest record of producing and exporting weapon systems is evident from the fact that India’s defense annual exports averaged only US$ 88 million between 2006-07 and 2008-09. By contrast, Pakistan exported $300 million worth of military hardware and munitions last year.

Alternatives:

India is looking for alternative sources for critical imports to reduce its dependence on the Chinese and Russians. But it faces an uphill task with Chinese imports in particular. China has become the biggest and the most efficient factory for the world's largest American, European and Japanese companies. Even if it does manage to find non-Chinese sources, India will have to pay much higher prices for such imports. And these imports may still contain crucial Chinese components which dominate the international supply chain for most non-Chinese companies, continuing its dependence on the Chinese.

On the defense side, India has begun to diversify away from Russia. Israelis have become major suppliers to India, and the US and Europeans are now bidding to sell military hardware to India. Both Israeli and Western equipment carries significantly higher price tags than imports from Russia.

Summary:

In spite of Gandhi's Swadeshi movement and Indian policy of developing self-reliance, the nation remains heavily dependent on imports from China for its critical infrastructure, and its growing appetite for weapons systems on Russia and Israel. These growing imports are fueling India's current account deficits, and adding to its paranoia with regard to the rise of China. In response, Indian government is acting to reduce dependence on Chinese imports, a move that will likely to add further to its trade imbalance because of the higher costs of imports from non-Chinese and non-Russian sources.

Related Links:

India-Israel Military Relations

Pakistan's Military Production

BRIC, Chindia, and the "Indian Miracle"

India's "Indigenous" Weapons

Pakistan's Telecom Boom

India's Growing Defense Budget

Friday, February 26, 2010

India to Borrow and Spend More in 2010 Budget

India's 2010-2011 budget of 11.08 trillion rupees ($240 billion) represents an increase of 8.6% over 2009-2010. The government plans to borrow $100 billion to finance the deficit during the fiscal year.

Going forward, India plans to cut the deficit to 5.5 percent of gross domestic product in the year starting April 1 from 6.9 percent the previous year. The effort, which relies on tax increases and 400 billion rupees ($9 billion) of state asset sales, is aimed at shrinking a debt burden equivalent to about 82 percent of the GDP.

The defense allocation for 2010-2011 is up another 8.13 percent on top of the massive 34% increase in 2009-2010, according to media reports.

India's defense expenditure has been raised to Rs.147,344 crore (Rs.1.47 trillion/$32 billion) for 2010-11, up 8.13 percent from the revised estimates of the previous fiscal, in the budget presented by Finance Minister Pranab Mukherjee in the Lok Sabha today.

According to the Wall Street Journal, India is one of the largest buyers of foreign-made munitions, with a long shopping list which includes warships, fighter jets, tanks and other weapons. Its defense budget is $30 billion for the fiscal year ending March 31, a 70% increase from five years ago. The country is preparing its military to deal with multiple potential threats, including conflict with China and Pakistan.

"For 2010 and 2011, India could well be the most important market in the world for defense contractors looking to make foreign military sales," according to Tom Captain, the vice chairman of Deloitte LLP's aerospace and defense practice.

In addition to defense, the much-needed social sector spending has also received a significant boost in the new budget.

• The spending on social sector has been gradually increased to Rs1,37,674 crore in 2010-11, which is 37% of the total plan outlay in 2010-11.

• Another 25% of the plan allocations are devoted to the development of rural infrastructure.

• Plan allocation for school education increased by 16% from Rs26,800 crore in 2009-10 to Rs31,036 crore in 2010-11.

• In addition, States will have access to Rs3,675 crore for elementary education under the Thirteenth Finance Commission grants for 2010-11.

• An Annual Health Survey to prepare the District Health Profile of all Districts shall be conducted in 2010-11.

• Plan allocation to Ministry of Health & Family Welfare increased from Rs19,534 crore in 2009-10 to Rs22,300 crore for 2010-11.

With 4.57 trillion rupees (about $100 billion) budget shortfall, the Indian government plans record levels of borrowing next year and will count on surging economic growth to help cut its fiscal deficit, putting pressure on the Reserve Bank of India (RBI) to be more aggressive in its monetary tightening, according to Reuters. Interest rate hikes by the RBI will raise the cost of borrowing by the private sector companies, and hurt India's economic growth.

Some analysts have praised the plan to reduce the fiscal deficit to 5.5 percent of the projected GDP in the new year from 6.9 percent of actual GDP this year, with further declines in planned coming years, and a RBI deputy governor said the budget addressed concerns on fiscal discipline. But other analysts said India had missed a chance to take more aggressive fiscal measures as Asia's third-largest economy gathers speed, reinforcing perceptions that the coalition government lacks the firmness to make tough decisions.

On top of the union budget deficit of 6.9% of GDP, the gross fiscal deficit of state governments is budgeted to increase to 3.2% of GDP in 2009-10 (Budget estimates), compared with 2.6% of GDP in 2008-09 (revised estimates). Revenue account turned from a surplus of 0.2% in 2008-09 (RE) to a deficit of 0.5% of GDP in 2009-10 (BE), according to a study 'State Finances: A Study of Budgets of 2009-10,' released by the Reserve Bank of India (RBI).

The study also noted that state-wise, revenue accounts of four states West Bengal, Punjab, Kerala, and Rajasthan recorded revenue deficits during 2008-09 (RE). Jharkhand turned from a revenue deficit to a revenue surplus state. In 2009-10 (BE), 10 states are expected to turn revenue deficit from a surplus status in the previous year. Overall, the revenue account is expected to be adversely impacted in the case of 23 states during 2009-10 (BE), the study noted.

The debt-GDP ratio of state governments came down to 26.2% in 2008-09 (RE) from the peak level of 32.8%, at the end of March, 2004. However, outstanding debt is budgeted to increase marginally to 26.5% of GDP by end-March 2010. The XII Finance Commission had recommended that states achieve a debt-GDP ratio of 30.8% till the end of March 2010.

In an opinion piece on Countercurrents, India's former commerce minister has said that Mukherjee "has failed to address the core issues of reducing public debt, curb the dangerously high fiscal deficit[ even the claimed target for 2010-11 of 5.5 per cent is too high, and will represent a huge diversion of funds with public sector banks away from private sector investment], and introduce innovation into the ailing industries such as Textiles, Food Processing, Power Generation and Distribution. Hence, despite his heroic effort to put together a promising Budget, he has at best produced a damp squib for financial reforms".

Swamy is particularly concerned about India's growing public debt which is now "over 90% of GDP and on an exploding trajectory".

Although rising public debt is always a concern, I think India's saving grace is that about 90% of its public debt is owed to its own citizens who save about 30% of their income. Of the rest, a big chunk of debt is held by IFIs like the World Bank, which, are not likely to press for quick repayment. At $230 billion, India's external debt accounts for 22% of GDP as of March 2009, according to Reserve Bank of India. In terms of the international comparison of external debt of the twenty most indebted countries, India was the fifth most indebted country in 2007.

Swamy further said that the Indian "agriculture has been poorly performing since 2003 due to investment starvation and lack of adequate purchase price. Indian manufacturing sector unlike the Chinese’ is domestic demand driven. IT software giants were skillful in finding new markets and cheaper labor from tier II and III cities in India. All, no thanks to government".

Members of the opposition in Indian parliament boycotted much of the budget session, saying government plans to increase fuel prices would further add to the woes of millions of Indians hit by high prices.

Related Links:

Highlights of Indian Budget 2010-2011

Indian Budget 2010-11: Strapped And Shackled By The Past

Reserve Bank of India: India's External Debt

India Budget Raises Borrowing to New Records

South Asia Slipping in Human Development

India's Defense Budget: Guns Versus Butter

Indian Military Brass Challenges China and Pakistan

India's Defense Spending: Facts Beyond Figures

Pakistan's Defense Budget

World's Top Arms Importers

PHI Poverty Hunger Index

Monday, February 1, 2010

Case For Resuming India-Pakistan Talks

I believe it is a crazy notion that talking to someone, particularly your adversaries, is a concession. This kind of distorted thinking is the result of the Bush era failed policy of "punishing" your enemies by refusing a dialog. US President George W. Bush is gone, but it appears that the Indian policy of not engaging with Pakistan is guided by with the irrational thinking learned from him.

If the Americans and the Soviets could talk when they had thousands of nuclear warheads pointing at each other during the cold war, surely India and Pakistan can, too.

It must be remembered that the population centers in India and Pakistan are so close geographically (unlike population centers in US and Russia) that any serious miscalculation can lead to a deadly nuclear war with little or no warning, a potential accident whose chances can be minimized by regular communication and discussions between India and Pakistan.

Unfortunately, excuses are dime a dozen, if India wants to pursue its misguided policy of prolonged disengagement. The costs of such a policy could potentially be much much greater than the terrorist incidents that affect Pakistan more than India.

The biggest cost of the policy of confrontation backed up by a massive military buildup by India is already being paid by the most vulnerable Indians whose numbers exceed the poor, hungry and illiterate people anywhere else in the world.

One out of every three illiterate adults in the world is an Indian, according to UNESCO.

One out of very two hungry persons in the world is an Indian, according to World Food Program.

Almost one out of two Indians lives below the poverty line of $1.25 per day.

And yet, India spends $30 billion on defense, and just increased the defense budget by 32% this year.

Here are some more recent comparative indicators in South Asia:

Poverty:

Population living under $1.25 a day - India: 41.6% Pakistan: 22.6% Source: UNDP

Underweight Children Under Five (in percent) Pakistan 38% India 46% Source: UNICEF

Life expectancy at birth (years), 2007 India: 63.4 Pakistan: 66.2 Source: HDR2009

Education:

Youth (15–24 years) literacy rate, 2000 to 2007, male Pak istan: 80% India 87% Source: UNICEF

Youth (15–24 years) literacy rate, 2000 to 2007, female Pak istan 60% India 77% Source: UNICEF

Economics:

GDP per capita (US$), 2008 Pak:$1000-1022 India $1017-1100

Child Protection:

Child marriage under 15-years ; 1998–2007*, total Pak istan - 32% India - 47% Source: UNICEF

Under-5 mortality rate per 1000 live births (2007), Value Pakistan - 90 India 72 Source: UNICEF

In spite of the grim statistics above, India is ranked the fourth biggest military spender in terms of purchasing power parity.

The poverty and hunger situation in Pakistan is only a bit less serious than in India. It is also in Pakistan's best interest to focus on developing its people and its economy rather than engaging in confrontation with its neighbors.

Given the ugly realities of South Asia, it is high time for India to respond to Pakistan's overtures, as argued in the following Op Ed by a sane Indian Siddarth Varadarajan in The Hindu newspaper:

When the Angels who rule India say they favour dialogue and peace with Pakistan but then fear to tread, is it any surprise that fools would rush nin to destroy that virtuous path? We will never know whether somebody from our shadowy security establishment whispered something dark and fanciful in the ears of the owners and managers of the Indian Premier League as they went in for the player auction last week and if so, for whom he was batting.

Certainly, the manner in which every Pakistani cricketer was boycotted despite the initial expression of interest by the teams smacks of considerations other than sports, business or common sense. Most of all, the decision betrays such a poor understanding of the geographies of market development, brand building and soft power that its net effect will be to undermine India’s interests in the widest possible sense.

My own view is that the boycott was not ordered or engineered by the Government of India or any of its agencies acting on instructions from the top. But that does not free our leadership from the vicarious responsibility of needlessly perpetuating a bilateral vacuum that has produced one of the most spectacular self-dismissals sub-continental cricket — and diplomacy — have ever seen.

In the face of a popular backlash across the border, the Ministry of External Affairs rightly noted that the government had nothing to do with the IPL selection. But instead of expressing regret over an outcome that it played no direct role in producing, the MEA statement threw a heap of salt on the wounded national pride of all Pakistanis. “Pakistan,” the Ministry smugly declared, “should introspect on the reasons which have put a strain on relations between India and Pakistan and adversely impacted on peace, stability and prosperity in the region.”

If anything, a little introspection on the Indian side may have been equally appropriate, since some senior Ministers — including P. Chidambaram — later went out of their way to say the exclusion of Pakistani cricketers was indeed unfortunate. Apart from reflecting badly on India, the insulting exclusion has allowed reactionary, extremist elements in Pakistan to seize the moral high ground. And it has pushed Pakistani public opinion and civil society further into the embrace of those who would like to perpetuate a climate of hostility with India and who have more than a soft spot for terrorism.

When terrorists from the Pakistan-based group, Lashkar-e-Taiba, attacked Mumbai in November 2008, Prime Minister Manmohan Singh decided not to repeat the mistake the Vajpayee government made in December 2001 of cutting off transport and people-to-people relations as part of its strategy of coercive diplomacy. Dr. Singh’s advisers knew they were dealing with a fractured polity and society across the border. They knew India needed a differentiated approach that would help isolate those elements in the Pakistani establishment with connections to jihadi organisations while strengthening those who had realised the damage state sponsorship of extremism was inflicting on Pakistan itself.

Within this framework, suspension of official dialogue was seen as a way of putting pressure on the Pakistani military and the Inter-Services Intelligence directorate, a strange conclusion given that the army and the ISI were never too hot on talks in the first place and used the resulting tension to rally the nation behind them. The civilian leadership, which managed to get a reluctant establishment to accept that the Pakistani soil had indeed been used to plan 26/11, needed the limited resumption of dialogue to strengthen itself for the larger domestic battle against military dominance and jihadism. The arrest of senior LeT operatives should have occasioned some let up from India, at least by the time their trial got under way last year. But the hysterical cries of sell-out which greeted the July 2009 Sharm el-Sheikh summit stayed the Manmohan Singh government’s hand. As for civil society, New Delhi believed it would be possible to push ahead with people-to-people relations despite the freeze that had set in at the official level. Subsequent events have shown that belief to be slightly misplaced. The problem was not with the willingness of Pakistani businessmen, cricketers, artists and others to engage with India but the corrosive effect the suspension of dialogue would have on the capacity of the Indian system to use soft power to its advantage.

The IPL fiasco is one example of the negative externalities generated by the lack of official contact between the two governments. But there are others. During the India International Trade Fair in 2009, several container loads of Pakistani products got held up in lengthy customs clearance procedures. Needless to say, this petty if unscripted harassment of traders and exhibitors from across did nothing to enhance India’s national interest. This year, many Pakistani publishers and book distributors have been unable to obtain visas for the Delhi book fair.

Instead of people-to-people relations influencing official relations in a positive way, the freeze in official ties has inevitably begun to cast a chill on all forms of interaction. Businessmen, who should be looking to exploit opportunities for mutual gain, have become infected with the same hard-line pathology that our security establishment suffers from. Last year, the Federation of Indian Chambers of Commerce and Industry Task Force on National Security and Terrorism came up with a report so strident and hawkish that it provoked an unhelpful backlash from traders in Pakistan. Among the “hard options” the FICCI task force said India could take against Pakistan in the event of another major terrorist attack were “surgical” strikes, covert retaliation inside Pakistani territory, the blocking of imports, all-out assault and “leveraging the water issue” to pressure Pakistan.

Like nature, the relationship between the two countries abhors a vacuum. India held back the tide of dialogue in the hope that Pakistan would permanently dismantle the infrastructure of terror on its territory and a more fertile ground for bilateral progress results. The strategy might have worked up to a point but diminishing returns set in a long time ago. Today, India is acting as if the continuing suspension of dialogue is buying it security and that the resumption of dialogue would be a concession to Pakistan. In fact, dialogue is nothing other than a mechanism for advancing one’s own goals. In the hands of a skilled diplomatic establishment, dialogue, even on a range of difficult issues and disputes, can be used selectively to harvest gains. New Delhi has talked to Islamabad for decades about Kashmir without conceding an inch of territory and there is no reason to fear what might happen if talks are resumed. Especially if the same dialogue process also allows bilateral trade to increase beyond the current annual level of $2 billion and allows Indian soft power to create a wider constituency for peace and good relations in Pakistan.

It goes without saying that Pakistan needs to do more to demonstrate its willingness to crack down on extremist elements that continue to plan attacks on India. On its part, India needs to realise that engaging with Pakistan will be a more effective way of driving home that point than trading statements and insults every few weeks and refusing to sit down at the same table. A new start must immediately be made with the convening of a meeting of the two Foreign Secretaries. Neither side should stand on ceremony as far as the venue is concerned. Union Home Minister P. Chidambaram should make it a point to visit Islamabad for the Saarc Home Ministers meeting later this month and meet his Pakistani counterpart to review not just the Mumbai case but other subjects of mutual concern. The Saarc summit in Bhutan in April will provide another occasion for bilateral interaction at the Prime Ministerial level though careful preparation is needed to ensure a productive and implementable outcome. In the meantime, a moratorium on sound-bites, especially by those who are not in the loop or in synch with Prime Minister Singh’s thinking, is essential.

Related Links:

India's Sane Voice Warns Indians

India Tops in Illiteracy and Defense Expenditures

UNESCO Education For All Report 2010

India's Arms Build-up: Guns Versus Bread

South Asia Slipping in Human Development

World Hunger Index 2009

Challenges of 2010-2020 in South Asia

India and Pakistan Contrasted 2010

Food, Clothing and Shelter in India and Pakistan

Introduction to Defense Economics

Food, Housing and Clothing in India and Pakistan