 "While Pakistan's populace suffers due to high inflation, unemployment, and poor healthcare facilities, the military gets high budget allocations. Agencies")
Pakistan’s federal budget for the fiscal year 2025–26 has once more brought the skewed national priorities of the country to the fore. While defence spending is sent soaring, critical sectors such as health and environment face steep cuts.
Finance Minister Muhammad Aurangzeb announced a record 20 per cent rise in defense allotment to ₨ 2.55 trillion— this marks the highest annual increase in over a decade and brings defense spending close to 2 per cent of GDP and 15 per cent of the entire federal budget.
Aurangzeb defended the decision, citing a “precarious” security environment and praising the armed forces for safeguarding the borders. A significant portion of the increase targets operational and infrastructure costs, potentially including repairs attributed to India’s Operation Sindoor, which hit several airbases.
The Pakistan Army is allocated nearly 45 per cent of the defence budget, with the Air Force and Inter-Services Intelligence each receiving around 20 per cent.
Health and environment budgets slashed dramatically
The budget reads as a tale of two narratives. While the military receives record funding, environmental programs and healthcare have suffered deep reductions.
The environment protection budget has been slashed from PKR 7.2 billion to PKR 3.1 billion, effectively halving funding for pollution control– an alarming development for urban centres such as Lahore, which ranked among the world’s most polluted cities last year.
Healthcare funding has been similarly reduced from PKR 52.1 billion (revised) to just PKR 31.9 billion.
This retrenchment comes despite Pakistan’s ongoing struggle with diseases like diabetes, malaria, dengue, and a doctor‑to‑patient ratio far below WHO recommendations.
Impact Shorts
More ShortsTensions surface between security and public welfare
The sidelining of environment and health sectors has sparked criticism among analysts who argue that the government’s focus on military investment comes at the expense of essential public services. Pakistan ranks among the most climate-vulnerable nations, regularly facing devastating floods and air pollution crises, while healthcare remains chronically underfunded.
Despite facing fiscal pressures, including nearly half the budget going toward debt servicing under an IMF program and an overall 7 per cent spending cut, the government has opted to sharply increase defence funding.
The Environment and health sectors have borne the brunt of austerity.
Drastically reducing investments in pollution control and climate resilience could exacerbate health risks and economic losses.
The World Bank estimates climate-related damages could slash nearly 20% off Pakistan’s GDP by mid-century. In healthcare, low investment could undermine efforts to tackle infectious and noncommunicable diseases and worsen health inequalities.
By prioritising defence spending now, Pakistan may be underinvesting in its people’s long-term resilience—raising critical questions about whether the country can sustain both its security needs and its duty to safeguard citizens’ well-being.