Skewed Priorities? Pakistan May Hike Defence Spending Budget By 18% Amid Record Debt Levels

News18

16 hours ago

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The proposed increase in military spending suggests that national security concerns continue to trump economic realities in Pakistan's policy-making corridors
In a stark display of misplaced priorities, Pakistan is reportedly planning to hike its defence spending by nearly 18 per cent in its budget that is set to be presented on Tuesday. The proposed increase would push Pakistan's defence budget to Rs 2,500 billion, further solidifying its focus on military expenditure at a time when its economy is struggling under the weight of an unprecedented debt burden.
The country's economic health has been a growing concern. According to the latest Economic Survey, Pakistan's public debt has reached a record high of Rs 76,007 billion, a figure that has nearly doubled over the past four years. Just five years ago, Pakistan's debt stood at Rs 39,860 billion. To put this into perspective, a decade ago, Pakistan's public debt was a mere Rs 17,380 billion—indicating an almost five-fold increase in the past 10 years.
The surge in debt is not limited to external borrowing. Domestic debt now stands at Rs 51,518 billion, while external debt accounts for Rs 24,489 billion. The Economic Survey warns that such a massive increase in debt could lead to serious economic vulnerabilities, including rising interest burdens that might cripple the country's fiscal sustainability. The survey also highlights that if left unaddressed, Pakistan could face long-term economic instability, affecting everything from social welfare to infrastructure development.
World Bank figures reveal the stark reality. While India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23, 1.9 million additional people fell into poverty in 2024-25 in Pakistan.
The World Bank report on Pakistan in April said the country's 2.6 per cent economic growth 'remains insufficient to reduce poverty". The poverty rate is estimated to stand at 42.4 per cent (US$3.65/day 2017 PPP) in FY25 in Pakistan, 'virtually unchanged from last year", the report said.
In a country where inflation is soaring, unemployment is high, and public services are underfunded, many question whether this continued emphasis on military spending is sustainable or responsible. With an economy teetering on the brink, Pakistan's fiscal mismanagement could risk further plunging the country into economic turmoil.
As Pakistan's defence budget continues to rise, the population remains increasingly burdened by inflation, poverty, and a government that seems reluctant to make the tough decisions necessary for long-term economic recovery.
First Published:
June 10, 2025, 09:16 IST