Pakistan Boosts Defence Budget by 20%, But Still Trails Far Behind India’s Military Spending

In a bold move reflecting regional security concerns and military pressures, Pakistan has announced a significant 20% increase in its defence spending for the upcoming fiscal year 2025-26. The newly unveiled budget by Prime Minister Shehbaz Sharif’s government allocates 2.55 trillion Pakistani rupees—roughly $9 billion—for defence, up from 2.12 trillion rupees ($7.45 billion) in the previous fiscal year.

This decision comes in the aftermath of a major military setback during India’s Operation Sindoor, in which Indian forces launched precision strikes deep into Pakistani territory, targeting terror infrastructure. The operation not only exposed Pakistan’s defensive vulnerabilities but also highlighted India’s growing confidence and capability in indigenous military technology.

Despite this defence hike, Pakistan’s overall budget for the year has shrunk by 7%, totaling 17.57 trillion rupees (around $62 billion). This cutback reflects Pakistan's ongoing economic challenges, including inflation, fiscal deficits, and the need to comply with International Monetary Fund (IMF) recommendations.

Notably, Pakistan’s defence figures do not include military pensions, which account for an additional 563 billion rupees ($1.99 billion). Including pensions, the total military-related outlay climbs closer to $11 billion. However, even with this adjustment, the figure remains a fraction of what India spends on defence.

India’s defence budget for 2025-26 stands at a massive $78.7 billion—nearly nine times more than Pakistan’s allocation. This includes $21 billion dedicated to procuring new weapons and technology. India’s budget also covers military pensions, giving it a broader scope of expenditure.

Operation Sindoor, conducted earlier this year, served as a turning point. Indian forces used domestically produced BrahMos cruise missiles, Akash air defence systems, and D4 anti-drone weapons to neutralise threats and carry out strategic offensives. Most of these systems were developed in India, showcasing the country’s increasing self-reliance in defence production.

Prime Minister Narendra Modi hailed the operation's success during a national address on May 12, highlighting the performance of Indian-made weapons. He asserted that India’s defence exports and indigenous capabilities have entered a new era, with the world taking note of "Made-in-India" military equipment.

However, India still depends significantly on foreign suppliers for many advanced systems. Between 2020 and 2024, India was the world’s second-largest arms importer, accounting for 8.3% of global imports, according to the Stockholm International Peace Research Institute (SIPRI). Russia remained India’s top supplier, providing 36% of its weapons. Yet, India has been gradually reducing its reliance on Russian arms, increasingly turning to suppliers like France, the United States, and Israel.

On the other hand, Pakistan’s military continues to rely heavily on Chinese technology and financial support. With its economic growth trailing behind its regional peers, Pakistan faces the dual challenge of maintaining military parity while managing internal financial stress. The Asian Development Bank noted that while South Asia as a whole is expected to grow at over 6% in 2025, Pakistan’s growth lags far behind, limiting its fiscal room for long-term military investments.

In essence, while Pakistan’s latest defence budget marks a sharp rise in military prioritisation, the gap between its military capacity and that of India continues to widen. With India ramping up both spending and indigenous production, and Pakistan grappling with economic strain, the regional balance of power is tilting more decisively in India's favour.