Pakistan’s Defense Budget in 2025–26: Prioritizing Security Over Welfare?

Pakistan’s Defense Budget in 2025–26

Tensions with India are ramping up, and with them comes a looming question: Pakistan’s Defense Budget. Will the government prioritize militarization while public services suffer? Let’s dive into the details.

What Is Pakistan’s Defense Budget Proposal?

The Pakistan Defense Budget for 2025–26 stands at a proposed PKR 2.8 trillion, marking an 18–32% increase over FY 25’s PKR 2.12 trillion. The surge aligns with a “war-like situation” and recent clashes with India. Officials mention it is essential for “defending sovereignty”. Meanwhile, ECONOMIC SURVEY data shows external debt growing to USD 87 billion, and debt servicing eating 1.9% of GDP.

Why the Pakistan Defense Budget Grows Despite Economic Uproar

Pakistan plans to boost military spending even as the economy stumbles. Recent IMF figures show fragile recovery—GDP growth at ~2.5%, inflation down from 29% to 4.6%, and foreign reserves at USD 9.4 billion.

Yet, Planning Minister Ahsan Iqbal emphasizes higher defense allocations due to recurring threats from India, international tensions, and rising militarization. Comparatively, Pakistan’s defense remains ~2% of GDP—lower than India’s 1.9% in absolute terms, though public debate questions this trade-off .

💣 IMF, India & Global Watchdogs Speak Up

International observers, including India and the IMF, are closely watching. India views excessive defense spending as a misuse of development funds. Meanwhile, the IMF is set to review Pakistan’s budget in late 2025, warning it must reconcile defense outlays with fiscal targets like a primary surplus of 1.6% of GDP.

Public & Economic Concerns Over the Defense Focus

There is a growing domestic backlash—with hashtags like #CutDefenseBudget trending on X. Critics argue that extra resources should be funneled into health, education, and economic recovery. Meanwhile, analysts warn that diverting funds could undermine social stability and maintain fragile macroeconomic gains .

Could Pakistan Make Smarter Budget Choices?

Yes—experts suggest:

  • Gradual increase in military spending instead of sudden surges.
  • Redirecting part of the rise toward PSDP, healthcare, and education.
  • Engaging provinces to share the burden, easing central fiscal pressure.
  • Enhancing transparency in defense procurement to boost public confidence.

✅ Conclusion

The Pakistan Defense Budget for 2025–26 is a storm front in national policy. On one side lies national security; on the other, economic recovery and social wellbeing. Striking a balance will define Pakistan’s path forward—and determine if defense becomes a catalyst for growth or a barrier to social progress.

For more news and updates, please visit PFM Today.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *