For the fiscal year 2025–2026, Pakistan has announced a substantial 20% rise in defense spending, increasing the allocation to 2.55 trillion Pakistani rupees (about $9 billion) from 2.12 trillion rupees ($7.45 billion) in the previous year.
Following recent confrontations with India, especially after the Indian military’s Operation Sindoor revealed weaknesses in Pakistan’s defense readiness, there has been a dramatic increase in military spending. Pakistan has cut its whole government budget by 7% to 17.57 trillion rupees ($62 billion) in spite of this increase in defense spending, indicating severe financial difficulties.
The considerable military pensions are not included in the official defense budget. An extra 563 billion rupees ($1.99 billion) was set aside for military pensions in the previous year, and this amount increases to 742 billion rupees ($2.63 billion) in FY26, bringing Pakistan’s total military-related spending to almost $11.67 billion. In addition, 704 billion rupees ($2.5 billion) are set aside for tangible assets like equipment.
On the other hand, India’s 2025–2026 defense budget is $78.7 billion, which is 9.5% more than the previous year and over nine times more than Pakistan’s declared defense expenditure. India’s budget includes $21 billion on military pensions and equipment. In reaction to previous wars and to support its expanding domestic defense sector, the Indian government has signaled its intention to increase defense spending even more.
Following a period of elevated tensions brought on by a terror incident in Pahalgam, Jammu and Kashmir, which India blamed on Pakistan-based groups, there has been a significant increase in military spending on both sides.
India’s military reaction, Operation Sindoor, demonstrated the country’s advancement in defense self-reliance by utilizing cutting-edge indigenous weapons such D4 anti-drone systems, Akash air defense systems, and BrahMos cruise missiles. During this operation, Prime Minister Narendra Modi emphasized the legitimacy of “Made-in-India” weapons, indicating a move toward more domestic manufacture, even though India is still the world’s second-largest importer of weapons, with the US, Russia, France, and Israel being major suppliers.
In the midst of economic difficulties, such as poor growth (estimated at 2.7% for the current year), IMF surveillance, and budget cuts to the development and social sectors, Pakistan has decided to prioritize defense spending. In addition to handling fiscal difficulties and meeting IMF standards, the administration must maintain security in a hazardous region.
Although Pakistan’s military budget is still far less than India’s, indicating a major disparity in conventional capabilities in South Asia, the country’s sharp increase in defense spending highlights the strategic and security concerns following previous clashes with India.
