Pakistan’s Budget Prioritizes Defense Over Development Amid Economic Crisis

Kokcha News Agency reports that Pakistan’s latest budget has allocated a staggering 2.55 trillion rupees (approximately $9 billion) to defense, more than doubling the military budget since 2016-2017. This comes at a time when the country is grappling with severe economic challenges, including a reliance on International Monetary Fund (IMF) assistance and stringent austerity measures.

In contrast, the budget for education has been slashed by 44%, from 103.8 billion rupees in FY 2024-2025 to just 58 billion rupees in the current fiscal year. Pakistan’s spending on education, at 1.9% of GDP, remains below the South Asian average of 2-3%. Similarly, healthcare expenditure stands at a mere 1% of GDP, far below the World Health Organization’s recommendations.

Finance Minister Muhammad Aurangzeb’s call for structural economic reforms appears rhetorical, as the budget continues to prioritize military spending over public welfare. This trend reflects decades of policy decisions that have deprioritized inclusive growth and development, with geopolitical tensions with India and a focus on military objectives shaping the national agenda.

The European Foundation for South Asian Studies highlights that Pakistan’s support for regional militant groups not only undermines internal security but also isolates the country internationally, hindering its participation in global supply chains. The ongoing emphasis on militarization over development has led to a neglect of critical socio-economic needs, further exacerbating the country’s economic woes.

Experts argue that a reformed political structure, centered on citizen welfare and a balanced allocation of resources, could pave the way for sustainable prosperity. However, such a shift would require challenging entrenched institutional practices and prioritizing development over defense.