Islamabad:
In response to security threats and recent military climbing with India, the federal government proposed on Tuesday a substantial increase of 21% of the defense budget for the financial year 2025-26 – a decision which collected intermediate support.
The proposed allowance of RS2 550 billion marks a sharp increase in the sharp increase in the initial defense budget for the exercise out of RS2 128 billion.
The revised figure of the current year is 2,181 billion rupees, reflecting the financial pressure of the military workforce of four days last month with India, during which the two countries exchanged missiles and drones for the first time since it has become nuclear powers.
The increase in defense spending in Pakistan this year exceeds the average annual increase of 10 to 15% observed in recent years, driven largely by what civil servants call a “radically modified regional security environment”.
The defense budget of India 2025-266 was set at $ 78.7 billion – an increase of 9.5% – with $ 21 billion intended for the purchase of new military equipment.
According to budgetary documents, Pakistan’s defense expenses as a percentage of GDP will reach 1.97%, against 1.71% of last year. The figures exclude 742 billion rupees allocated to retired military personnel pensions and 300 billion rupees for the development program of the armed forces.
A ventilation of the proposed allocation of RS2,550 billion shows: 846 billion rupees reserved for wages and expenses related to employees; 704 billion rupees for operating expenses; 663 billion rupees for the supply of arms, ammunition and related equipment – both national and imported – and 336 billion rupees for civil work and the development of infrastructure.
While the three services – the army, the navy and the air forces – will receive budgetary increases, the Pakistani army continues to order the largest part because of its size and its operational responsibilities.
The budget hike came following unprecedented hostilities last month, triggered by the allegations of India that Pakistan was behind the attack by Pahalgam. Pakistan has categorically denied any involvement.
The two countries exchanged drones and missiles before accepting a commercial cease-fire in the United States on May 10, which was held despite India later rejecting the mediation of Washington and insisting on its military campaign-nicknamed “the Sindoor operation”-was simply interrupted.
During the conflict, Pakistan killed six Indian hunting planes and a drone. Islamabad has since warned that any future violation of its sovereignty would be greeted by a quick and energetic response.
India, under Prime Minister Narendra Modi, adopted a more aggressive posture, declaring that any future attack could be treated as an act of war.
Defense analysts argue that the strategic landscape has changed. India effectively reducing the conflict threshold, Pakistan’s defense planners are increasingly focusing on the acquisition of new generation technologies, including fifth generation fighter planes from China, advanced drones and cyber-war capacities.
In recent years, debates on the balance of defense spending with development priorities were common.
However, in the current context of an increased military alert and geopolitical uncertainty, the last budget has aroused little public criticism.
Experts warn that in the absence of a credible peace process and a sustained diplomatic commitment, the region may be made in an expensive and dangerous arms race.
