ISLAMABAD, PAKISTAN. - Pakistan, faced with the prospect of sharply reduced foreign aid during the coming year, has announced a budget that calls for stringent national austerity but provides substantially more money for the military.

Cigarettes and greeting cards are among the thousands of items that will cost more because of higher taxes.

Wedding ceremonies and marriage dowries, both important to Moslems, will also be taxed.

During the last year, West Pakistani suffered drought and East Pakistan a cyclone that is estimated to have taken a half million lives. A brief but bloody conflict between the army and Bengali separatists also took place in East Pakistan.

The army's methods in crushing the secessionist movement have tended to turn public opinion against Pakistan in those countries that in the past have given her aid. Foreign assistance, on which Pakistan's economy is heavily dependent, has been reduced drastically .

ECONOMY SUFFERS

As a result, the country's economy is in a state of crisis. Western nations are tacitly insisting that Pakistan solve her political problems before full-scale aid is resumed.

This pressure has led Pakistani officials and others in the last week to denounce bitterly policies that seeks to influence the country's domestic affairs.

A typical comment appeared in the New Times of Rawalpindi. "Quite a strong opposition to aid has grown up in the country which we regard as the most healthy development." the newspaper said in an editorial. "The time to cut ourselves loose of these apron strings is long overdue.

"We must learn to live austerely and streamline our means of production in agriculture, trade and industry, in such a broad based manner that our teeming millions are absorbed in them creatively.

"Such a miracle has happened in China in recent times. So far we have depended rather obsequiously on the Harvard economist. Why not try the experts from Peking so that, like China, we too are not at the aid-receiving end?"

CALL FOR SELF-RELIANCE

In presenting the budget for the coming fiscal year, starting July 1, M. M. Ahmed, economic adviser to the Pakistani President, said yesterday.

"The need for self-reliance was never greater than at the present time when some of the aid-giving countries appear to be hesitating to make fresh aid commitments. "To the extent that this attitude constitutes an attempt to influence our domestic political situation, it is wholly contrary to their own professions that aid to developing countries is without political strings."

The United States has provided roughly $200-million a year to Pakistan - about half of the country's total foreign aid.

Except for relief to East Pakistan, aid to Pakistan from major donors has been largely frozen since March 25, when the army moved into the East in force.

The budget for the fiscal year 1971-72 was reduced to $1.87-billion from last year's $l.89-billion. But appropriations for both civil administration and defense were increased substantially.

The increase for defense, while attributed to fears of war with India, is also the result of maintaining an army of occupation in East Pakistan.

MILITARY SPENDING UP

The new military budget of $723-million represents 38.7 per cent of the total budget, compared with 3.8 per cent last year.

However, some items of military spending are included in other sections of the budget. The total spent on defense is considered by experts to be much higher than that officially given.

Pakistan, a nation of 130 million people, is one of the poorest in the world. Health standards are low, only 8 per cent of the population can read and overcrowding is exacerbated by a population growth rate of more than 3 per cent a year.

The new budget calls for major increases in personal and corporate income taxes and seeks to plug loopholes. Many measures seem especially aimed at the 22 Pakistani families said by economists to dominate the nation's economic wealth.

A TAX ON PARTY GUESTS

Special incentives are offered family-owned companies to sell stock. All luxuries will be heavily taxed. When more than 150 persons attend a party, a levy will be charged for the extra guests.

The new tax on marriage dowries strikes at one of the traditions of the Moslem family life. Traditionally, the bride's father gives the groom property or money.

Despite the austerity measures, however, the new budget still shows a deficit of about $76-million.