ISLAMABAD, Pakistan (Diya TV) — Pakistan has announced a major increase in its military spending following a recent conflict with India that brought both nuclear-armed neighbors dangerously close to war.
In its federal budget for the 2025-26 fiscal year, unveiled Tuesday, the government proposed a nearly 20% hike in defense spending. The new military budget stands at 2.55 trillion Pakistani rupees, or about $9 billion, up from 2.12 trillion rupees last year.
Finance Minister Muhammad Aurangzeb called it a “historic moment” and said defense must remain a top priority. He made the announcement during a speech to the National Assembly, where the budget is expected to pass with little opposition.
The decision follows violent clashes in April that led to the worst military confrontation between Pakistan and India since the 1999 Kargil War. The fighting began after an attack in India-administered Kashmir killed 26 Hindu tourists. India blamed Pakistan for supporting the attackers, a charge Pakistan strongly denied.
In the days that followed, both sides exchanged fire. India struck deep inside Pakistan, hitting military targets, including an air base in Rawalpindi. Pakistan responded by downing several Indian jets, according to officials in Islamabad. Independent analysts confirmed that at least two Indian fighter planes crashed during the fighting.
Though both sides agreed to a ceasefire after four days, the brief but intense conflict raised serious questions about regional stability.
Despite facing a fragile economy, Pakistan is pressing ahead with higher defense spending. The country has dealt with soaring inflation, a weak currency, and repeated bailouts from the International Monetary Fund. As recently as last year, Pakistan was on the brink of default.
Now, the government is trying to stabilize the economy with help from a multibillion-dollar IMF program and a new 10-year loan plan with the World Bank. Still, overall spending in the new budget will drop by 7%, to 17.57 trillion rupees ($62 billion).
That means other areas, like social welfare and development programs, will likely see cuts.
“It’s a big hike and will have to be funded from somewhere,” said economist Safiya Aftab. “It will affect spending on social sectors, which is unfortunate but perhaps inevitable given the recent conflict.”
Despite the economic pain, the public seems to support the defense hike — at least for now. Analysts say the military’s image has improved following the clashes with India. Once criticized for political interference and suppressing opposition figures like Imran Khan, the military is now seen as the protector of national security.
“National survival has always overridden the financial debate,” said defense analyst Hasan Askari Rizvi.
Pakistan’s partnership with China is also helping ease the cost burden. Officials say China has offered new military equipment, including fighter jets, missile systems and surveillance planes. Some of these deals include flexible terms like deferred payments and even strategic gifting.
This growing defense relationship with China contrasts with Pakistan’s past reliance on U.S. military aid. Experts say it gives Pakistan more freedom to modernize its military.
Even with this increase, Pakistan’s defense budget remains far smaller than India’s. India spends around $80 billion annually on its military. It is also considering raising its budget further in light of the recent tensions.
“There is a staggering asymmetry in defense economics,” wrote political analyst Farrukh Saleem in The News International. But he added that Pakistan proved its effectiveness during the conflict, noting how lower-cost Chinese equipment performed well against India’s Western technology.
The Sharif government expects the economy to grow by 4.2% in the next fiscal year, up from 2.7% this year. But meeting IMF conditions, including new taxes on agriculture, retail, and real estate, will be key.
Prime Minister Shehbaz Sharif acknowledged the public’s sacrifices in a speech Tuesday, and called on Pakistan’s elite to contribute more.
“This is a question that the wealthy groups — including me — have to answer,” he said.
While the government faces pressure to modernize the military, experts warn that the cost may be too high for ordinary citizens.
