Human Security in Pakistan There is a visible upward trend up to 2018-19. Initially, greater priority was attached to military expenditure in the presence of a military government. Thereafter, the rampant increase in acts of terrorism necessitated a more spread-out and stronger military network. The fall in 2021-22 is the consequence of severe emerging budgetary constraints. The third indicator quantifies the sustainability of defense spending. This is the extent to which the Box 6.1: Financing of Defence Expenditure solely by Borrowing The deterioration in the financial position of the Federal government is amply demonstrated by the fact that the entire defense budget of Pakistan is likely for the first time to be fully financed by borrowing in 2022-23, as shown below: defense budget can be financed by net revenues of the federal government after meeting first the obligation of debt NET REVENUES Tax Revenues 2020-23 (Projected) Rs in Billion) 4,850 7,300 servicing. This was fully Non-Tax Revenues 1,750 the case in the earlier Less Transfer to Provinces 4,200 years, but it has fallen sharply from 100% in 2015-16 to 29% in 2021­22. DEBT SERVICING Net Revenues after Debt Servicing Defence Expenditure Financing by: 5,200 -350 2,189 The current financial By net revenues 0 year is likely to witness By borrowing 100 virtually full financing of defense expenditure with borrowing by the federal government, as shown in Box 6.1. This indicates that with rising pressure on the containment of the primary budget deficit, there may be a need to move towards a cut in defense spending, especially the non-combat-related component. The last indicator of territorial security is the ratio of expenditure on defense to the expenditure on health and education. This indicates the extent to which targeting for territorial security may divert resources from other forms of human security. This ratio has shown a visible decline from 2.10 in 20001-02 to 1.07 in 2021-22, as shown in Table 6.1. The Territorial Security Index reached a peak in 2017-18 but fell sharply thereafter. Consequently, the Index in 2021-22 is even lower than in 2001-02. 36