Islamabad: Pakistan today (July 8, 2004) indicated the increase in India's Defence spending in this year's Budget would accelerate the arms race in the region and hinted at hiking its Defence expenditure to upgrade its capabilities to address the "asymmetry" in conventional weapons.

"Pakistan and India have been pursuing twin tracks of confidence building and dialogue so that we can bring peace, security and prosperity to the region. An upward spiral in Defence spending accelerates arms race in the region, symmetrically or asymmetrically, voluntarily or involuntarily," Pakistan Defence spokesman Masood Khan told reporters in Islamabad.

"The unusual increase in India's Defence Budget comes shortly after the commencement of the composite dialogue to resolve Kashmir and other contentious issues between the two countries," he noted.

"After maintaining a freeze in our Defence Budget for years, we have increased it modestly this year. Our Defence is strong and our capabilities competitive. But the existing asymmetry in the conventional field has to be addressed. We are therefore obliged to upgrade our capabilities, both quantitatively and qualitatively," he said.

Pakistan this year has increased its Defence Budget by 21.7 per cent from $ 2.8 billion to $ 3.4 billion.