Pakistan has announced a defence spending increase in its upcoming budget, even as its economy struggles and the IMF waits for answers.
According to Dawn, the country has postponed its federal budget presentation by a week due to disagreements with the IMF — mostly over its plan to hike defence spending by 18% while cutting public development funds.
So, what does this mean for the average Pakistani? Let’s Have a Look
Less money for schools, hospitals, water, and food. More money for guns. And still, no solution to crippling inflation, youth unemployment, or chronic power shortages.
For a country still paying off past bailouts, Pakistan’s budget priorities look… confused. It’s like maxing out your credit card on home security cameras when you can’t even pay your electricity bill.
The IMF isn’t laughing either. It’s reportedly pressing Islamabad to come up with alternative revenue sources before approving the next bailout. The lender also wants tax reforms, especially on agricultural income, and a rollback of industrial subsidies — none of which are easy pills to swallow.
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Hard cuts, soft targets
Pakistan’s Public Sector Development Programme (PSDP) has been slashed by 20%. Only road projects and MPs’ discretionary funds have been spared. Here’s where the axe has fallen hardest:
- Energy: ₹144 billion (down from ₹169B)
- Water: ₹109 billion (down from ₹135B) – yes, while India builds more dams
- Social sectors: ₹150 billion (down from ₹200B)
- Agriculture: Just ₹3 billion, down from ₹8B — in a country where food prices are already soaring
The defence allocation, meanwhile, stays strong at 2.3% of GDP — higher than India’s 2%. For a “cash-strapped” nation, that’s a bold (or baffling) flex.
The India Obsession
Islamabad’s logic? India remains an “existential threat.” But here’s the thing — India isn’t sending its economy to the ICU to buy tanks. The obsession with military parity has long defined Pakistan’s budget choices, often at the cost of development, education, and economic health.
Meanwhile, the provinces are doing the heavy lifting.
Punjab and Sindh are contributing more to national development than the federal government. At an Annual Planning Coordination Committee (APCC) meeting, Planning Minister Ahsan Iqbal urged provinces to stop expecting handouts. Translation: “We’re broke, you figure it out.”
There’s a kind of dark irony in it all. Pakistan’s economy is gasping for air, but its defence budget is alive and well. The IMF wants numbers. The people want relief. And the government wants… missiles.
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