ISLAMABAD:
Facing growing security challenges on its eastern and western borders and the emergence of new forms of warfare, the federal government on Friday proposed a 17.6% increase in defense spending for fiscal year 2026-27, signaling Islamabad’s growing concern over an increasingly complex regional security environment.
The government allocated Rs 3,010 billion for defense in the new budget, up from Rs 2,557 billion in the outgoing fiscal year. The revised defense expenditure for 2025-26 stood at Rs 2,595 billion, reflecting additional needs to address an exceptionally difficult security year.
The surge comes at a time when Pakistan faces a multi-threat landscape. While tensions with India remain high despite the absence of active hostilities following last year’s military standoff, relations with Afghanistan have deteriorated significantly, marked by recurring border clashes, cross-border attacks and growing diplomatic frictions.
Defense Minister Khawaja Muhammad Asif, defending the increase, said the increase in defense spending was a “national need”, adding that Pakistan’s armed forces had shown “excellent performance” in the recent conflict with India.
Speaking to reporters after the budget presentation, he said the regional security environment had become increasingly imbalanced due to tensions involving Iran, Israel and the United States, while India, under Prime Minister Narendra Modi, pursued “aggressive designs” against Pakistan.
“Indian leaders consider hostility towards Pakistan as a primary duty, so strengthening national defense and aligning military capacity with modern needs made it necessary to increase the defense budget,” he told reporters.
He further said that the improvement was consistent with the prevailing circumstances, adding that the conflict involving Iran, Israel and the United States had created an unusual situation not only in the region but globally, making it essential to strengthen national defense capabilities.
Security officials and analysts say Pakistan can no longer view its security challenges solely through a conventional military lens, as the country now faces a combination of traditional threats, terrorism, cyber warfare, information warfare and rapidly evolving technologies that are reshaping modern battlefields.
The latest budget documents show that defense spending will account for around 2% of Pakistan’s Gross Domestic Product (GDP), slightly up from 1.97% last year. The figures exclude 822 billion rupees allocated for military pensions and 319 billion rupees for the Armed Forces Development Programme.
According to the breakdown, Rs 967 billion has been allocated for salaries and employee-related expenses, Rs 743 billion for operational costs, Rs 925 billion for weapons, ammunition and equipment, and Rs 363 billion for civil works and infrastructure.
The proposed increase comes after a rise in terrorist violence, particularly in Khyber-Pakhtunkhwa and Balochistan, along with strained relations with the Taliban-led government in Kabul. Islamabad has repeatedly accused Afghanistan of allowing militant groups to use its territory for attacks inside Pakistan, accusations that Kabul denies but which have fueled cross-border incidents and diplomatic tensions.
On the eastern front, Pakistan continues to monitor developments in India after last year’s military standoff, with officials warning that future crises could increasingly involve drones, precision weapons, electronic warfare and cyber capabilities rather than conventional troop movements.
The changing nature of warfare is also shaping defense planning, with analysts pointing to lessons from conflicts in Ukraine, the Middle East and South Asia, highlighting the growing importance of drones, artificial intelligence, space surveillance, cyber resilience and integrated air defense systems.
As a result, Pakistan is expected to accelerate modernization efforts, including interest in next-generation fighter jets, possible acquisition of Chinese fifth-generation platforms, and expansion of indigenous drone and cyber warfare capabilities.
The budget increase also comes amid an increase in regional military spending. India has allocated around $86 billion for defense in its 2026-27 budget, a 15% increase from the previous year. The growing spending gap remains a concern for Pakistani planners, who maintain that maintaining credible deterrence is essential for strategic stability.
Traditionally, defense allocations have sparked a debate over whether resources should be allocated to development and social welfare. This year, however, those criticisms have been relatively muted amid heightened security concerns and regional uncertainty.
(WITH CONTRIBUTIONS FROM OUR CORRESPONDENT KHALID MAHMOOD)
