With a 20% rise in military spending to 2.55 trillion Pakistani rupees (about $9 billion) from 2.12 trillion rupees the year before, Pakistan has announced a substantial increase in its defense budget for the fiscal year 2025–2026.
The recent and deadly dispute with India, which saw the two nuclear-armed neighbors teeter on the verge of war following a horrific incident in Indian-administered Kashmir, led to weeks of military escalation and casualties on both sides, is what prompted this spike in defense spending.
Prime Minister Shehbaz Sharif’s administration defended the hike by citing increased security risks and national security imperatives. Sharif also emphasized the necessity for economic success following what he called a military triumph against India.
Only the enormous expenditure for debt payment, which continues to be the nation’s biggest financial burden, surpasses the defense budget as the second-largest portion of Pakistan’s federal spending. The overall federal budget for 2025–2026 has been cut by roughly 7%, or 17.57 trillion rupees ($62 billion), despite the significant increase in military spending. This is in an effort to address the government’s record-high public debt and to meet the International Monetary Fund’s (IMF) demands for fiscal restraint and reform.
The social sectors have suffered greatly as a result of this defense-related priority. According to reports, the health budget has been cut by almost 50%, indicating a sharp decline in funding for public healthcare. Analysts point out that significant cuts have also been made to social welfare and development spending, which are probably meant to balance the higher defense budget. The new budget also deprioritizes funding for climate change mitigation, agricultural development, and higher education—all vital sectors for Pakistan’s long-term stability and prosperity.
Opposition MPs blasted the administration for ignoring vital public services in favor of military spending, disrupting the parliamentary session with protests in response to the budget announcement. Concerns have been expressed by economists and foreign observers that these budgeting decisions could weaken Pakistan’s already precarious social safety net, obstruct human growth, and increase the nation’s susceptibility to natural disasters and economic shocks.
The government’s priority of security concerns over developmental requirements is demonstrated by Pakistan’s choice to drastically expand its defense budget at the expense of health and social welfare spending, all while dealing with a continuing economic crisis. Pakistan’s growth is still lagging behind its regional counterparts, despite officials’ claims of economic stabilization and a projected growth rate of 4.2% for 2025–2026. The most disadvantaged members of society are expected to bear the social costs of these fiscal decisions.
