Guns Over Grains: Cash-Strapped Pakistan Hikes Defence Budget Amidst Economic Crisis
Pakistan’s economy is grim: inflation exceeds 38%.
By : DC Web Desk
Update: 2025-05-26 13:28 GMT
Even as children go hungry and hospitals lack basic supplies, Pakistan’s rulers prioritize guns over grains. The cash-strapped government has announced an 18% increase in its defense budget, pushing military spending past PKR 2.5 trillion for the upcoming fiscal year. This controversial decision follows India’s Operation Sindoor, a swift response to the April 22 terror attack in Pahalgam that killed 26 people.
Planning Minister Ahsan Iqbal justified the hike, citing tensions with India and the suspension of the Indus Waters Treaty. However, experts question whether this war-focused budget prioritizes national security or reinforces the military’s dominance.
Guns Before Growth?
Pakistan’s economy is grim: inflation exceeds 38%, unemployment is rampant, and foreign reserves cover just three months of imports. With $22 billion in external debt and a $25 billion trade deficit, fiscal challenges mount. Yet, under IMF scrutiny, Islamabad pushes a defense-first approach, allocating only 2% of GDP to education and 1.3% to healthcare. Critics argue this imbalance neglects social welfare for military might. “You cannot eat missiles,” quipped a Karachi-based analyst.
The Military’s Long Shadow
Between FY2017 and FY2025, Pakistan’s defense budget grew 12.6% annually, outpacing India’s 8%. Beyond weapons, the military’s “Milbus” controls banks, housing, factories, and media, holding sway over 12% of the country’s land. Scholar Ayesha Siddiqa notes this unchecked, tax-exempt empire stifles private industry and democracy.
A Bailout-Funded Arms Race?
Pakistan has received over 25 IMF bailouts since 1950, including four in the last five years. The latest $1 billion tranche came with fiscal reform conditions, but transparency is lacking. India’s Foreign Secretary Vikram Misri urged the IMF to scrutinize Pakistan’s fund use, suspecting loans indirectly fuel military escalation.
Public Outcry Grows
Columnist Afshan Subohi asked, “Who will bear the cost of this defense hike?” For many, the answer is the common citizen. With crumbling services and no economic reform, prioritizing military spending sparks outrage among civil society, economists, and some ruling coalition members.
India’s Message
Operation Sindoor, targeting terror camps in Pakistan and PoK, eliminated over 100 militants and exposed Pakistan’s air defense weaknesses. Islamabad’s budget hike signals strength after this strategic blow, but experts warn this bravado risks long-term costs. “You cannot bomb your way out of poverty,” said a South Asia defense analyst.
Bottom Line
Pakistan’s defence budget is a political message: the military, not the economy, holds power. As citizens face inflation, unemployment, and crumbling infrastructure, the question looms: Is this about defense or deflection?
Written by: Prabhash Kumar, University of Hyderabad, Intern.