Pakistan hikes defence spending by 20% to $9 bn, still nearly 9x less than India's

Pakistan announced on Tuesday that it is raising its defence expenditure by a steep 20 per cent. The government of Prime Minister Shehbaz Sharif presented a budget that allocated 2.55 trillion rupees ($9 billion) for defence spending in FY26, compared to 2.12 trillion in the fiscal year ending this month. This comes after the country suffered serious setbacks from Indian strikes during Operation Sindoor.

Pakistan, meanwhile, is shrinking overall spending by 7% to 17.57 trillion rupees ($62 billion).

Pakistan's allocation of 2.12 trillion rupees ($7.45 billion) for defence in the outgoing fiscal year included $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defence budget.


Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and 6.0% growth is expected in 2025, according to the Asian Development Bank.

India vs Pakistan defence spending

India's defence spending in its 2025-26 (April-March) fiscal year was set at $78.7 billion, a 9.5% increase from the previous year, including pensions and $21 billion earmarked for equipment. This is almost nine times more than Pakistan's defence budget for FY26.

India has indicated it will step up expenditure following the conflict with Pakistan.

The success of Operation Sindoor, aimed at Pakistan terror groups had highlighted the strength of India’s growing defence industry. During the operation, India used its own advanced weapons, showing that the country is becoming more self-reliant in defence technology.

India deployed BrahMos supersonic cruise missiles and other precision weapons to strike terror bases and military targets deep inside Pakistan. The Indian armed forces also used indigenous Akash air defence missiles and D4 anti-drone systems to stop multiple Pakistani aerial attacks, allowing very few to get through.

Prime Minister Narendra Modi praised the achievement in his address on May 12, saying, “During this operation, the credibility of our Made-in-India weapons was firmly established. The world now recognises that the time for Made-in-India defence equipment in 21st-century warfare has arrived.”

Despite the progress in indigenous weapons, India still depends heavily on arms imports. According to the Stockholm International Peace Research Institute (SIPRI), India is the world’s second-largest arms importer, with an 8.3% share between 2020 and 2024.

Russia remains India’s largest arms supplier, providing 36% of imports. However, India is diversifying, buying more weapons from countries like France, Israel, and the US, as Russia’s share has steadily declined over the years.