Pakistan’s Defence Budget: Balancing Security Needs and Economic Challenges

Every year, Pakistan’s defence budget becomes a focal point of criticism and debate. It appears that many are unaware of the global context of military spending. Comparatively, Pakistan’s military expenditure is in line with other nations worldwide.

According to the World Bank’s military spending estimates, Pakistan allocated 2.6% of its GDP to defence in 2022, while India spent 2.4%. Despite Pakistan’s GDP lagging significantly behind India’s, our defence budget has consistently remained between 2-3% of GDP. In 2024, Pakistan’s total defence budget, including pensions, is projected at 2.5% of GDP.

The scrutiny on our defence budget often stems from our poor economic performance. Anemic growth, extremely poor tax collections, and wasteful spending have exacerbated the situation. Notably, losses of state-owned enterprises in the fiscal years 2021 and 2022 amounted to a staggering 1,400 billion PKR.