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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared WRAPUP 3-BP siphons gushing oil, Obama defends his actions 6:01am EDT BP siphons gushing oil while Obama defends his actions | Video 8:48am EDT Israel boards Gaza aid ship | Video 11:06am EDT Verizon may be alone in following AT&T rate change 04 Jun 2010 Autopsy shows Gaza activists were hit 30 times: report 04 Jun 2010 U.S. says weighing new options over North Korea | Video 8:07am EDT UPDATE 5-McDonald's recalls 13.4 mln 'Shrek' drinking glasses 04 Jun 2010 New Apple iPhone on tap but may fail to dazzle 04 Jun 2010 Israel intercepts new Gaza-bound aid ship: activist 12:16am EDT G20 scraps plans for universal bank tax 7:25am EDT Autopsy shows Gaza activists were hit 30 times: report 04 Jun 2010 Israel boards Gaza aid ship | Video 11:06am EDT UPDATE 5-McDonald's recalls 13.4 mln 'Shrek' drinking glasses 04 Jun 2010 McDonald's recalls 13.4 million "Shrek" drinking glasses 04 Jun 2010 Israel intercepts new Gaza-bound aid ship: activist 12:16am EDT Anti-tumor impact seen with Pfizer lung cancer drug 9:04am EDT BP siphons gushing oil while Obama defends his actions | Video 8:48am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Arizona police officer challenges migrant law 10:07am EDT WRAPUP 3-BP siphons gushing oil, Obama defends his actions 6:01am EDT Militancy-hit Pakistan ups defense spending by 17 percent Zeeshan Haider ISLAMABAD Sat Jun 5, 2010 10:20am EDT Related News Pakistan hikes defence spend by 17 pct in 2010/11 8:52am EDT U.S. seeks to dispel doubts on India partnership Thu, Jun 3 2010 UPDATE 6-Pakistan central bank governor resigns Thu, Jun 3 2010 Pakistan military says 20 Taliban killed in Orakzai Wed, Jun 2 2010 Pakistan claims success against militants in Orakzai Tue, Jun 1 2010 ISLAMABAD (Reuters) - Pakistan will increase defense spending by 17 percent in the 2010/11 fiscal year as the U.S. ally intensifies its battle against Taliban insurgents operating from their enclaves on the border with Afghanistan. World Defense spending is set to rise to 442.2 billion rupees ($5.17 billion) for the 2010/11 fiscal year beginning on July 1, compared with 378.13 billion rupees allocated in 2009/10. "I think security is our topmost issue," Finance Minister Abdul Hafeez Shaikh told parliament in his budget speech. "We are facing a situation in which our armed forces, paramilitary forces and security forces are laying down their lives ... They should know from this house that we all stand by them." Pakistani forces have mounted a series of offensives in the volatile northwest over the past year, killing hundreds of militants and capturing many of their bases. However, militants have retaliated with a wave of bomb and suicide attacks throughout the country, including its heartland, Punjab, killing hundreds of people. More than 80 were killed last week in twin attacks on Ahmadis -- a minority religious group declared non-Muslim in Pakistan -- in Lahore, the capital of the country's biggest province of Punjab. Pakistan raises its defense spending every year because of its historically uneasy relations with old rival India. Relations between the nuclear-armed rivals, which have fought three full-scale wars since 1947, went into a freeze after Pakistan-based militants attacked the Indian city of Mumbai in 2008, killing 166 people. CONSISTENCY IN SPENDING However, security analysts say much of the increase in the defense budget would be spent on the fight against Islamist militants. "As far as India is concerned, there is a consistency in their spending on the eastern front (with India)," said Talat Masood, a retired army general turned analyst. "But primarily the increase in defense spending is meant to boost the counter-insurgency capability of the security forces." Pakistan, a vital ally for the United States as it struggles to stabilize Afghanistan and end the global threat posed by al Qaeda and its allies, has been heavily burdened by the cost of battling Taliban insurgents along its Afghan border. The United States has given Pakistan more than $15 billion in direct and military reimbursements since the September 11, 2001 attacks on the United States. About two-thirds of it is security related. (Editing by Chris Allbritton and Myra MacDonald) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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