ISLAMABAD:
Faced with growing security challenges on its eastern and western borders and the emergence of new forms of warfare, the federal government on Friday proposed a 17.6 per cent increase in defense spending for the financial year 2026-27, signaling Islamabad’s growing concern over an increasingly complex regional security environment.
The government has allocated Rs 3,010 billion for defense in the new budget, compared to Rs 2,557 billion in the previous fiscal year. Revised defense spending for 2025-26 stood at Rs 2,595 billion, reflecting additional needs to cope with an exceptionally challenging security year.
This increase comes at a time when Pakistan faces a multi-pronged threat landscape. While tensions with India remain high despite the absence of active hostilities following last year’s military confrontation, relations with Afghanistan have deteriorated significantly, marked by recurring border clashes, cross-border attacks and growing diplomatic friction.
Defense Minister Khawaja Muhammad Asif, defending the increase, said increased defense spending was a “national necessity”, adding that Pakistan’s armed forces had demonstrated “excellent performance” during the recent conflict with India.
Speaking to reporters after the budget presentation, he said the regional security environment had become increasingly unbalanced due to tensions involving Iran, Israel and the United States, while India, under the leadership of Prime Minister Narendra Modi, was pursuing “aggressive designs” against Pakistan.
“Indian leaders view hostility towards Pakistan as a paramount duty, which is why strengthening national defense and aligning military capabilities with modern requirements have made it necessary to increase the defense budget,” he told reporters.
He further said that this strengthening was in line with the current circumstances, adding that the conflict involving Iran, Israel and the United States had created an unusual situation not only in the region but globally, making strengthening national defense capabilities essential.
Security officials and analysts say Pakistan can no longer view its security challenges solely through a conventional military lens, as the country now faces a mix of traditional threats, terrorism, cyber warfare, information warfare and rapidly evolving technologies that are reshaping modern battlefields.
The latest budget documents show that defense spending will account for around 2% of Pakistan’s gross domestic product (GDP), slightly higher than last year’s 1.97%. The figures exclude Rs822 billion allocated to military pensions and Rs319 billion for the armed forces development programme.
According to the breakdown, 967 billion rupees were allocated for salaries and personnel-related expenses, 743 billion rupees for operational costs, 925 billion rupees for arms, ammunition and equipment, and 363 billion rupees for civil works and infrastructure.
The proposed increase follows a surge in terrorist violence, particularly in Khyber-Pakhtunkhwa and Balochistan, as well as strained relations with the Taliban-led government in Kabul. Islamabad has repeatedly accused Afghanistan of allowing militant groups to use its territory for attacks inside Pakistan, allegations that Kabul denies, but which have fueled cross-border incidents and diplomatic tensions.
On the eastern front, Pakistan continues to monitor developments in India after last year’s military standoff, with officials warning that future crises could increasingly involve drones, precision weapons, electronic warfare and cyber capabilities rather than conventional troop movements.
The changing nature of warfare is also shaping defense planning, with analysts drawing lessons from conflicts in Ukraine, the Middle East and South Asia, highlighting the growing importance of drones, artificial intelligence, space surveillance, cyber resilience and integrated air defense systems.
As a result, Pakistan should accelerate its modernization efforts, including focusing on next-generation fighter jets, potentially acquiring fifth-generation Chinese platforms, and expanding its domestic drone and cyberwarfare capabilities.
The budget increase also comes against a backdrop of increasing regional military spending. India has allocated around $86 billion for defense in its 2026-27 budget, an increase of 15% from the previous year. The growing spending gap remains a concern for Pakistani planners, who say maintaining a credible deterrent is essential to strategic stability.
Traditionally, defense allocations have sparked debate over whether resources should be directed toward development and social welfare. This year, however, such criticism has been relatively muted amid heightened security concerns and regional uncertainty.
(COURTESY OF OUR CORRESPONDENT KHALID MAHMOOD)
