Pakistan Report Exposes Military Fund Diversion To Build Proxy Assets | Exclusive

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Last Updated:May 06, 2025, 15:25 IST

The resource misallocation has left militant groups like Tehreek-e-Taliban Pakistan & Baloch insurgents free to exploit vulnerabilities, further complicating the security landscape

Support for groups such as JeM and LeT has necessitated continuous financial and logistical backing, resulting in shortages for soldiers in conflict zones. (AP)

Support for groups such as JeM and LeT has necessitated continuous financial and logistical backing, resulting in shortages for soldiers in conflict zones. (AP)

A Pakistan study group has accepted that army funds are diverted for the wrong reasons in the country, specifically for prioritising proxy assets over troop readiness.

A 2023 report by the Pakistan Institute for Peace Studies (PIPS), accessed by CNN-News18, has shed light on a critical flaw within Pakistan’s counter-terrorism framework. The study group identified that funds intended for the Pakistan army have been diverted for misguided purposes and this misallocation has left security forces under-equipped and demoralised, creating opportunities for militant groups to exploit governance gaps.

Artillery units along the Line of Control (LoC) are operating at only 30 per cent of the required shell stockpiles, while 65 per cent resources are directed towards managing proxy assets. This has left militant groups like the Tehreek-e-Taliban Pakistan (TTP) and Baloch insurgents free to exploit these vulnerabilities, further complicating the security landscape. Pakistan’s strategic reliance on proxy groups in Kashmir and Afghanistan has significantly strained its counter-terrorism budget, diverting resources that should have been used for modernising equipment, training, and logistics.

Support for groups such as Jaish-e-Mohammed (JeM) and Lashkar-e-Taiba (LeT) has necessitated continuous financial and logistical backing, resulting in shortages for soldiers in conflict zones like Balochistan and Khyber Pakhtunkhwa. For example, a leaked memo from the Rawalpindi Corps in 2024 revealed that troops stationed in Siachen were forced to reuse frost-bitten clothing due to inadequate supplies.

The TTP’s shift to targeting security forces instead of civilians, combined with its operational ties to the Afghan Taliban, has made it a persistent threat. Additionally, the Balochistan Liberation Army’s (BLA) use of social media platforms such as Telegram and WhatsApp for recruiting educated youth, including women, has complicated counterinsurgency efforts.

The diversion of funds has also hampered Pakistan’s ability to counter advanced systems like India’s S-400 missile network. Pakistan has relied on cleaning operations without addressing deeper issues such as political marginalisation in Balochistan or Pashtun grievances, causing the state’s warlord-based approach to Afghanistan to backfire and fuel militancy. Mid-ranking officers have expressed concerns about the sustainability of proxy tactics, fearing potential escalation.

There is also growing concern among officers about India’s rapid mobilisation and advanced defence systems, like the S-400 missile systems, which could overpower Pakistan’s defences in a conventional war, the sources added. Proxy attacks, such as the 2023 Poonch ambush, risk escalating into such a scenario.

A 2023 Armed Forces Health Survey revealed that 25 per cent troops exhibited PTSD symptoms, with suicide rates up 40 per cent since 2020. Forward posts lack essential facilities, leading to tragic incidents like the deaths of six soldiers from frostbite in the Gurez sector in 2023 due to inadequate gear.

The issue is not new. In 2019, the US Department of State reported that groups like JeM and LeT continued to operate from Pakistani territory with state tolerance, indicating Pakistan’s failure to dismantle these organisations. Without rebalancing resources and addressing political grievances, Pakistan’s security challenges are likely to intensify.

Location :

Islamabad, Pakistan

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