This represents approximately a 20% increase in defence expenditure compared to the previous budget, according to CNN-News18.
Planning Minister Ahsan Iqbal confirmed on Saturday, June 7, that the government is intending to enhance the defence budget.
“It is our national responsibility to equip the armed forces with everything they require in this budget to strengthen their capabilities and secure our nation moving forward,” Iqbal stated, as reported by the Pakistani Daily Dawn.
“It has been demonstrated that we face a perilous neighbour who has attacked us in the night, but we responded appropriately,” he added.
Previous Defence Budget of Pakistan
For FY 2024-25, Pakistan had set aside PKR 2.1 trillion for defence, which included $2 billion earmarked for equipment and other assets. Last year’s defence budget was increased by 16.4%.
According to data from the Stockholm International Peace Research Institute (SIPRI), military and defence expenditures for Pakistan amounted to around $10.2 billion for FY25.
The nation aims to maintain its nuclear capabilities while enhancing its missile defence systems. A report by The Economic Times (ET) indicates that Pakistan holds an advantage over India in the domain of mobile rocket systems, possessing 600 such systems in contrast to India’s 264.
Is Pakistan able to sustain an increased defence budget?
Pakistan’s escalating debt coupled with ongoing economic instability and elevated inflation rates presents challenges.
The economic survey for 2024-25, published on June 9, revealed that the country disbursed $7.8 billion in external debt service payments in the last fiscal year, raising total public debt to PKR 76 trillion.
Islamabad owes China $15 billion, Japan $3 billion, and over $1 billion to France, with total external obligations amounting to approximately $87.4 billion, as reported by Firstpost.
How does Pakistan compare to India?
India significantly outpaces Pakistan with a larger military and substantially higher defence spending.
The Indian government has allocated $78.7 billion for defence for the financial year 2025-26, marking a 9.5% increase from the prior fiscal year. As noted by SIPRI, India’s military spending totals $86.1 billion, making it the fifth-largest defence spender globally.
Over the past decade, India’s defence budget has seen a consistent rise, alongside an increase in the production of homegrown weapons and defence systems, in addition to procurement of fighter jets and air-defence systems from its international partners.
