Pakistan raises defence spending, grants little to human resources: Report
Islamabad, July 2
Pakistan's federal budget for Fiscal Year 2026-27 has prioritised military spending over public welfare by increasing defence spending by 18 per cent to three trillion Pakistani Rupees, showcasing the armed offers as the clear winner during attempts to meet economic stabilisation targets. The budget offers little to the human resources that actually drive economic growth.
"The combined federal allocations for higher education, primary schooling, and healthcare account for only a fraction in comparison to the military's multi-billion-dollar budget. Roughly 46 billion rupees ($165 million) for higher education and 25 billion rupees ($89 million) for healthcare were allocated. Their combined total pales in comparison to the massive federal defence budget," Uzay Bulut, a Turkey-born journalist formerly based in Ankara, wrote in PJ Media.
In recent years, poverty levels in Pakistan have increased dramatically. According to the Pakistan Economic Survey 2025-26, the national poverty headcount ratio rose to 28.9 per cent in FY2024-25, up from 21.9 per cent in FY2018-19, resulting in approximately 27 million additional people getting pushed into poverty, bringing the total number to around 70 million. Rural poverty increased from 28.2 per cent to 36.2 per cent while urban poverty surged from 11 per cent to 17.4 per cent.
In addition, a large chunk of the budget has been granted to debt servicing (interest payments), leaving limited space for social expenditure and asset creation. Debt servicing has been granted a massive share of the budget at around 8.054 trillion rupees.
Along with defence, these two-line items account for more than 60 per cent of the total federal outlay (over PKR 11 trillion), resulting in very constrained space for social protection, education, health, infrastructure, and development spending.
"The defence budget is nearly three times the entire federal development budget and significantly higher than combined federal allocations for education and health. Social protection (mainly Benazir Income Support Programme) has increased to 838 billion rupees ($3.01 billion/up ~17 per cent), but overall social sector spending remains insufficient relative to rising needs. The sectors that directly uplift human capability such as education have thus been given a mere pittance," Bulut wrote in PJ Media.
The allocation of national resources reflects the prioritises of a nation. Through the latest budget, Pakistan's government heavily taxed salaried people and formal businesses to increase defence spending by 18 per cent while people of the country do not have basic health, literacy, education, employment, infrastructure, and economic opportunities.
— IANS
Reader Comments
As a student of economics, this is heartbreaking. 8 trillion rupees on debt servicing alone! And only 46 billion for higher education? The youth of Pakistan deserve better. Their literacy rate is already struggling, and now they're cutting off the one lifeline that could actually help them compete globally. India's higher education budget may not be perfect, but at least we're investing in IITs, AIIMS, and our university system. 😔
This is what happens when a country's foreign policy is driven by hostility towards its neighbours rather than internal development. India has its challenges, but our defence budget, while large, is complemented by massive investments in infrastructure, healthcare, and education. Pakistan's obsession with military parity has left its people starving. A nation cannot survive on guns and bombs alone. Common sense, yaar.
Look, I'm all for national security, but this is just sad. 28.9% poverty rate and they increase defence spending by 18%? What's the point of having a strong military if your own citizens can't afford healthcare or education? This is a classic case of misplaced priorities. The Pakistani people deserve leaders who care about their basic needs first.
Honestly, this makes me appreciate our Indian system a little more. Yes, we have our own issues with budget allocation, but at least our government invests in schemes like Ayushman Bharat, PM Kisan Samman Nidhi, and free education for the poor. Pakistan's leadership seems completely disconnected from the ground reality. 70 million people in poverty? That's almost our entire population of Maharashtra! 😢
R We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.