Home USA Featured Inflation Hits Record High—But Pakistan Prioritizes Rs 2.5 Lakh Crore Defense Budget

Inflation Hits Record High—But Pakistan Prioritizes Rs 2.5 Lakh Crore Defense Budget

Inflation Hits Record High—But Pakistan Prioritizes Rs 2.5 Lakh Crore Defense Budget

One of Pakistan’s greatest economic crises in recent memory is currently underway.

Defense Budget Soars Amid Inflation

Prices of everyday goods are rising fast, making life difficult for ordinary citizens. Inflation has gone above 38%, meaning things like food, fuel, and clothes have become much more expensive. Even though families are struggling to buy basic items, the government has decided to increase its defense budget by a huge margin.

The 2025–2026 defense budget has increased by 18%. This suggests that Pakistan would now spend more than Rs 2.5 lakh crore on its military. Despite the nation’s growing debt, this is happening. Pakistan’s economy is currently in debt to the tune of almost 70%. Additionally, the nation is dealing with a $25 billion trade deficit. This means that Pakistan is buying much more from other countries than it is selling to them.

In addition, Pakistan only has enough money in its reserves to pay for three months of imports. This is a sign of a very weak financial position. Despite all this, a large part of the country’s budget is being directed towards defense, leaving less money for other important areas like education, health, and job creation.

Criticism Over Misplaced Priorities

Many people have criticized the government’s decision to spend more on defense during such tough economic times. Experts believe that this focus on military spending could harm the country’s progress. Money that could have been used to help poor families, build hospitals, improve schools, or create jobs is now being used to buy weapons and fund military operations.

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The government says the defense budget increase is necessary because of rising tensions on its borders. However, critics argue that focusing too much on defense and ignoring basic needs will only make things worse for the common people. They say that the country needs strong economic reforms and better management of public money instead of more military spending.

At the same time, large amounts of money are also being spent on big infrastructure projects. While these projects may be important, they also use up funds that could help millions of struggling families. When money is taken away from public services to fund defense and construction, ordinary people feel the impact in their daily lives.

Nuclear Modernization Amid Financial Strain

Alongside the increase in defense spending, Pakistan is also working on modernizing its nuclear weapons. According to a recent report from the United States, Pakistan is upgrading its nuclear arsenal. The report also says that Pakistan may be getting materials related to Weapons of Mass Destruction from other countries, especially China. Some of these materials are reportedly being moved through different countries before reaching Pakistan.

This modernization is taking place while Pakistan’s financial condition remains fragile. The International Monetary Fund (IMF) gave $1 billion to Pakistan just earlier this month. This money is part of a special program meant to help the country manage its finances better. The IMF funds are important because they help Pakistan keep its economy from collapsing.

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Even with this help, Pakistan’s economy is under great pressure. The country has very little money saved and a long list of bills to pay. It owes a lot of money to other countries and international lenders. And with rising prices at home, people are finding it harder to afford basic necessities like food, medicine, and electricity.

Despite all these financial problems, defense spending has remained a top priority. While security is important for any country, many believe that spending more on people’s welfare would bring more stability in the long run.

In short, Pakistan is going through a serious economic crisis, but its government has chosen to raise its defense budget sharply. This decision has raised concerns among many who feel that the money could be better used to improve the lives of the people. While border tensions and national security are important, so is making sure that citizens can afford meals, access good healthcare, and send their children to school. As the economy continues to bleed, the growing gap between defense spending and public welfare becomes harder to ignore.

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Ruta Deshpande is a seasoned Defense Technology Analyst with a strong focus on cutting-edge military innovations and strategic defense systems. With a deep-rooted interest in geopolitics and international relations, she brings nuanced insights into the intersection of technology, diplomacy, and global security. Ruta has reported extensively on defense modernization, space militarization, and evolving Indo-Pacific dynamics. As a journalist, she has contributed sharp, well-researched pieces to Deftechtimes, a reputed defense and strategy publication. Her analytical writing reflects a strong grasp of global military doctrines and regional conflict zones. Ruta has a particular interest in the Arctic race, cyber warfare capabilities, and unmanned combat systems. She is known for breaking down complex defense narratives into accessible, compelling stories. Her background includes collaborations with think tanks and participation in strategic dialogue forums.

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