ISLAMABAD, July 22: The annual income of the armed forces from management of cinema houses, general stores, bakeries, ice factories and commercial activities on agricultural land comes to only Rs270 million , shows the record placed before the National Assembly here on Thursday.

The record pertaining to the commercial activities of the armed forces on A-1 military land was provided to the Assembly by the defence ministry in response to a question by MNA Farid Ahmed Piracha.

The opposition staged a token walk out in the lower house to protest against incomplete answers given by parliamentary secretary for defence, Maj (retd) Tanvir Hussain in response to the question.

In response to the question if the income earned from the commercial projects is credited to the Federal Consolidated Fund, the defence ministry gave a justification for utilization of the amount directly by the Army.

"Funds generated are well utilized and are spent on the genuine needs of the Army, which cannot be catered for in the annual defence budget," the ministry maintained.

The ministry further said, "there is an institutionalized system of check and balances and all proceeds are properly audited at various levels."

About proceeds of the Lahore Fortress Stadium, the defence ministry said the amount of annual rent and the properties attached to it (Fortress Stadium) were being utilized for the welfare of army personnel. Qualified and reputed private chartered accountants also audit the proceeds of the Fortress Stadium, said the ministry.

In the federal budget 2004-05 the government allocated over Rs190 billion for the armed forces.

Details of the commercial projects established by the armed forces on A-1 government land showed that in the Punjab province, 22 petrol pumps, 33 general stores, 11 bakeries, seven ice factories three cinema houses and three pieces of agricultural land earn annual revenue of Rs103.237 million.

In NWFP, the armed forces earn Rs18.987 million from commercial proceeds of 10 petrol pumps, 13 general stores, four bakeries and four cinema houses.

In Sindh, the armed forces earn Rs12.40 million from the proceeds of four petrol pumps, one bakery, three ice factories, four general stores and eight pieces of agricultural land.

In Balochistan, two petrol pumps, two general stores and one piece of agricultural land earn annual revenue of Rs136.364 million.

Individual breakdown of the proceeds under different heads showed that cinemas earn a revenue of Rs5 million for the armed forces.

It is to be mentioned that the Auditor General of Pakistan in the audit reports has objected to the conversion of A-1 military lands for commercial purposes.