Pakistan defence budget expenditures during the last five years is seen on the decline. Available government data show that a sum of Rs194 billion was allocated from a total budget outlay of Rs902 billion in 2004-05, while in 2008-09 out of total budget outlay of Rs210 billion, a sum of Rs296 billion was allocated for defence. During the last five years, the defence budget ratio to government expenditures declined by 7 percent, as it worked out to only 15 percent declining from 22 percent of the total expenditures. Former Finance Advisor, Dr. Salman Shah said that the cut in defence expenditures aimed at more cost-effective utilization of the fund. He said that the defence budget didnt include armed forces retired employees pension funds, as it was not part of the defence budget. International sources said that US thus far provided $10 billion to Pakistan for defence purposes, while the former finance advisor insisted that $10 billion was not the US defence aid, it was actually paid on account of the war on terror expenses incurred by Pakistan, which in fact quite higher than the amount paid. Prime ministers finance advisor, Shaukat Tareen said that the allocation of defence budget would be increased in the next national budget in view of the ongoing tensions at the borders.