ISLAMABAD:
Faced with mounting security challenges on both 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 the 2026-2027 fiscal year, signaling Islamabad’s growing concern over an increasingly complex regional security environment.
The government allocated Rs3.010 billion for defense in the new budget, up from Rs2.557 billion in the last financial year. The revised defense expenditure for 2025-2026 was Rs 2,595 billion, reflecting additional requirements to deal with an exceptionally difficult security year.
The increase comes at a time when Pakistan is facing a multi-pronged threat landscape. While tensions with India remain high despite the absence of active hostilities following last year’s military confrontation, relations with Afghanistan have deteriorated significantly, marked by recurring border clashes, cross-border attacks and growing diplomatic friction.
Defense Minister Khawaja Muhammad Asif, defending the increase, said the increase in defense spending was a “national necessity”, adding that Pakistan’s armed forces had shown “outstanding performance” in the recent conflict with India.
Speaking to reporters after the budget presentation, he said the regional security environment had become increasingly unbalanced due to tensions involving Iran, Israel and the United States, while India under Prime Minister Narendra Modi was pursuing “aggressive designs” against Pakistan.
“Indian leadership considers hostility towards Pakistan as a primary duty, therefore strengthening national defense and adapting military capabilities to modern requirements has necessitated the increase in the defense budget,” he told reporters.
He further said that the improvement was in line 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.
Officials and security analysts say Pakistan can no longer view its security challenges through a conventional military lens alone, as the country now faces a mix 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 about 2% of Pakistan’s gross domestic product (GDP), slightly higher than last year’s 1.97%. The figures do not include Rs 822 billion allocated for military pensions and Rs 319 billion for the Defense Development Programme.
According to the breakdown, Rs 967 billion has been earmarked for salaries and employee-related expenses, Rs 743 billion for operational costs, Rs 925 billion for arms, ammunition and equipment and Rs 363 billion for civil works and infrastructure.
The proposed increase follows a rise in terrorist violence, particularly in Khyber-Pakhtunkhwa and Balochistan, alongside 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, claims Kabul denies but have fueled cross-border incidents and diplomatic tension.
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 helping to shape defense planning, with analysts pointing to lessons learned from conflicts in Ukraine, the Middle East and South Asia and highlighting the growing importance of drones, artificial intelligence, space-based surveillance, cyber resilience and integrated air defense systems.
As a result, Pakistan is expected to accelerate modernization efforts, including interest in next-generation combat aircraft, possible acquisition of Chinese fifth-generation platforms, and expansion of indigenous drone and cyber warfare capabilities.
The budget increase also comes on the back of rising regional military spending. India has allocated about $86 billion for defense in its 2026-27 budget, a 15% increase from the previous year. The widening spending gap remains a concern for Pakistani planners, who argue that maintaining credible deterrence is critical to strategic stability.
Traditionally, defense appropriations have sparked debate about whether resources should be directed towards development and social welfare. This year, however, such criticism has been relatively muted due to increased security concerns and regional uncertainty.
(With input from OUR CORRESPONDENT KHALID MAHMOOD)
