Budget context
The FY2024-25 official defence allocation was PKR 2.13 trillion (~$7.6B at the prevailing exchange rate), representing 1.97% of GDP. Following the May 2025 air-and-missile exchange with India, the government approved a 20% emergency increase — described as "the largest in a decade" — bringing the annualised figure to PKR 2.55 trillion (~$9.1B). Salaries and pensions consume the largest share; capital procurement and modernisation account for roughly 20-25% of the total. Economic constraints are severe: Pakistan is under an IMF Extended Fund Facility, inflation has remained elevated, and education and health receive 2% and 1.3% of GDP respectively. Defence spending crowds out civilian investment while the country depends on external balance-of-payments support.
Force structure
The Pakistan Army (560,000 active) is the dominant service and political institution, operating a corps-based structure with nine strike and defensive corps. The Pakistan Air Force (70,000) fields a modernised mixed fleet: JF-17 Thunder (China co-produced, ~150+ operational across Block 1/2/3) as the primary multirole platform; 75+ F-16A/B/C/D for beyond-visual-range combat; and 20+ J-10CE acquired from China in 2022, fielding PL-15 active-radar missiles. The Pakistan Navy (30,000) operates the Agosta 90B submarine fleet, with four Type-054A/P frigates under construction in China. Babur land-attack cruise missiles and Shaheen ballistic missiles form the conventional and nuclear strike backbone. The Strategic Plans Division Force (25,000) controls the nuclear arsenal separately from the services.
Industrial posture
Pakistan's defence industrial base is significant for a lower-middle-income economy but heavily dependent on Chinese technology transfer. Pakistan Aeronautical Complex (PAC) co-produces 58% of the JF-17 airframe domestically and has a declared capacity of 20 aircraft per year. Heavy Industries Taxila produces Al-Khalid and Al-Zarrar main battle tanks under Chinese licence. Pakistan Ordnance Factories cover small arms, artillery ammunition, and rocket motors. NESCOM (National Engineering & Scientific Commission) oversees the Shaheen, Ghauri, and Babur missile families. Arms exports remain modest — mostly JF-17 and Al-Khalid pitches to Turkey, Malaysia, and African customers — but China-linked technology transfer gives Pakistan capabilities well above its GDP bracket.
Conflict exposure
Pakistan faces concurrent internal and external pressures. Domestically, counter-insurgency operations in FATA/KP against Tehrik-i-Taliban Pakistan (TTP) — which increased cross-border attacks from Afghan territory in 2024-2025 — consume army resources and cause casualties. The India axis remains the existential planning scenario: both countries are nuclear-armed, the Line of Control in Kashmir sees periodic violence, and the May 2025 aerial exchange marked the first confirmed combat use of Chinese-supplied J-10CE and PL-15 missiles in a real conflict. Pakistan brokered the US-Iran ceasefire on April 8, 2026, signalling a diplomatic role that provides some geopolitical cover but also highlights Pakistan's complex great-power positioning between China, the US, and Gulf states.
Recent developments
The May 2025 India-Pakistan conflict (Operation Sindoor on the Indian side) was the most intense confrontation since Kargil 1999: Pakistan's J-10CE aircraft and PL-15 missiles reportedly downed several Indian Rafales, while Indian BrahMos and Scalp strikes hit Pakistani airbases. A ceasefire was brokered within 96 hours under US pressure. Pakistan's June 2025 emergency defence budget (+20%) followed. On April 8, 2026, Pakistan's Foreign Minister played a lead role in negotiating the US-Iran ceasefire that ended Operation Epic Fury — a significant diplomatic coup. SIPRI's April 2026 release estimated Pakistan's 2025 spend at approximately $10.2B, ranking it 31st globally.