Guns Over Growth: Pakistan Raises Defence Budget to Rs 2.5 Trillion Amid Economic Collapse, India War Fears

 

Debt-Ridden Pakistan Arms Up Against India, Announces Massive $14 Billion Defence Budget

 

News Desk: Pakistan, grappling with record-high debt, inflation nearing 40%, and a severe water crisis, has announced a staggering increase in its defence budget for 2025–26. The cash-strapped nation plans to raise military spending by nearly 18%, taking the total allocation to over Rs 2.5 trillion (approx. $14 billion) — its largest ever.

The dramatic hike comes just weeks after a bloody four-day military exchange with India in May, following the Pahalgam terror attack in Jammu & Kashmir, where 26 civilians were killed by Pakistan-backed terrorists.

Planning Minister Ahsan Iqbal confirmed the budget boost on Saturday (June 7), calling it a “national duty.” Speaking to Pakistani daily Dawn, he said,

“It is our national duty to provide the armed forces with whatever they need in this budget to bolster their capacity and defend our country in the future. It has been proven that we have a dangerous neighbour (India) who attacked us in the night, but we gave them a befitting response.”

Iqbal added that Pakistan must “remain ready to respond if they attack again,” justifying the allocation as essential in the face of what he called India’s “water aggression” and the suspension of the Indus Waters Treaty.

The defence hike is part of a larger strategic shift, including plans to fast-track the $14 billion Diamer-Bhasha Dam project with Chinese assistance, aimed at addressing Pakistan’s water crisis but also viewed as a strategic asset in the tense regional equation.

However, the move comes at a time when Pakistan’s public debt has ballooned to Rs 76 trillion, nearly double since 2021, with its economy surviving on repeated bailouts from the IMF and Asian Development Bank. Critics warn that such massive defence allocations threaten to crowd out critical spending on health, education, and poverty alleviation.

International concern is mounting. Observers, including India, are wary that Pakistan’s bloated defence budget could indirectly funnel money into extremist networks, especially given the military’s long history of links with terror outfits.

Despite repeated assurances that the defence budget was shared with lenders prior to bailout approvals, experts fear that Pakistan’s economic reforms could unravel under the weight of militarisation and populist infrastructure spending.

While Pakistan continues to portray India as its primary threat, its military outlay still falls far short of India’s $86 billion annual defence budget, nearly nine times higher. Yet, the regional security equation could be further strained as Islamabad arms up while neglecting its crumbling social fabric.

As Pakistan prioritises guns over growth, international lenders and neighbours alike will be watching closely — not just how much it spends, but where the money really goes.

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