Why is Pakistan spending more on defense as Budget 2026-27 sparks debate?
ISLAMABAD – Pakistan’s federal government has sharply increased its defense budget to Rs 3,000 billion for the fiscal year 2026-27, compared to a staggering 17.6 percent increase over the previous year.
Finance Minister Muhammad Aurangzeb, while presenting the budget in the National Assembly, justified the increase citing the “uncertain regional security environment” and the need to ensure a “viable national defense currency”. The latest appropriations cap a dramatic three-year increase in military spending. From Rs 2,122 billion in 2024-25, the defense budget has increased by Rs 878 billion, reflecting continued year-on-year expansion despite fiscal pressures and persistent concerns over debt servicing.
Last year’s revised figure of Rs 2,595 billion, already a significant jump, has now been pushed higher in the new fiscal plan.
According to official budget documents, the 3 trillion rupees allocation is divided into 967 billion rupees for employee expenses, including salaries and allowances (a 14.36 percent increase), 743 billion rupees for operational expenses such as fuel, training, medical, transport and logistics, and 925 billion rupees “to cover physical assets, fast assets”. and Rs 336 billion for military hardware (a rapid 39 percent increase) and maintenance of infrastructure, construction and defense facilities.
This increase reflects a shift toward modernization and technology-driven warfare, including drones, cyber capabilities, and advanced weapon systems.
Critics say that while defense spending continues to rise, economic constraints and debt pressures are squeezing all other sectors. Analysts note that while defense spending as a share of GDP has technically declined over time, its weight on federal revenues remains substantial.
The budget documents further state that although military pensions are not formally part of the defense budget, they represent a large parallel expenditure. Out of 1,169 billion rupees earmarked for pension, 822 billion rupees are earmarked only for retired soldiers. Defense analysts point to growing regional instability, citing border tensions, trends in cyber warfare, drone-based conflicts, and global war dynamics, including in Ukraine and the Middle East.
In reality, modern warfare calls for constant upgrades. He said that defense preparation without modern technology is impossible in today’s environment.
Pakistan is a security country and geographical and regional tension is the main reason for the continuous increase in defense expenditure in the budget. The South Asian knight sits in a tough neighborhood. Tensions with India, military stand-offs, and long-standing conflicts mean the state prioritizes deterrence and military preparedness.
On the western side, instability in Taliban-led Afghanistan and fears of cross-border militancy added another layer of pressure. Together, these factors put security at the top of the agenda.
The government defended Budget 2026-27 as a growth-oriented plan with relief measures.
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