Pakistan is set to boost its defense budget by 17 percent, allocating $9 billion (2.55 trillion rupees) as tensions with India soar following a deadly flare-up in April.
In response to this heightened threat, Islamabad revealed that China has offered cutting-edge military hardware—including 40 J-35 stealth fighter jets and ballistic missile defense systems—signaling a significant escalation in their strategic alliance.
This increase in defense spending underscores Pakistan’s urgent focus on modernizing its military capabilities amid a volatile regional security environment. The rise in budget allocation comes after the most intense conflict with India in years, raising concerns about future escalation. Simultaneously, China’s role as Pakistan’s primary arms supplier is becoming more prominent, reshaping the military balance in South Asia.
Pakistan’s finance ministry announced a defense budget increase to $9 billion (2.55 trillion rupees) for the 2025-26 fiscal year, up from $7.7 billion (2.18 trillion rupees) the previous year. Defense spending remains the country’s second-largest budget item after debt servicing, underscoring Islamabad’s prioritization of military strength despite significant economic challenges.
The recent conflict between India and Pakistan, in which dozens of people were killed, came in the wake of an attack on tourists in Indian-administered Kashmir. Pakistan denied Indian allegations of involvement in the attack.
Since 2019, China has supplied about 82 percent of Pakistan’s imported weapons, a sharp rise from 51 percent during 2009–2012, according to data from the Stockholm International Peace Research Institute. This dependency is reflected in China’s recent offer to sell Pakistan a comprehensive military package that includes 40 Shenyang J-35 stealth fighter jets, Shaanxi KJ-500 airborne early warning and control (AEW&C) aircraft, and HQ-19 ballistic missile defense systems, as confirmed by official Pakistani government statements and defense industry sources.
The J-35, still under development, is a fifth-generation stealth fighter comparable to the U.S. F-35 Lightning II. It features low-observable design, an internal weapons bay, and advanced radar for networked warfare.
The KJ-500 AEW&C aircraft boosts Pakistan’s aerial surveillance with its large radar dish and active electronically scanned array (AESA) radar, providing 360-degree coverage vital for early threat detection. The HQ-19 missile defense system offers ballistic missile interception, an important asset for Pakistan’s layered defense.
Pakistan also recently secured a $4.6 billion contract with Azerbaijan for 40 JF-17 fighter jets, co-developed by Pakistan Aeronautical Complex and China, further cementing its military-industrial partnership with Beijing.
Pakistan Finance Minister Muhammad Aurangzeb: “National defense is the most important priority of the government. For this national duty, Rs2,550 billion [$9.04 billion] will be allocated.”
Pakistan Prime Minister Shehbaz Sharif: “After defeating India in a conventional war, now we have to go beyond it in the economic field as well.”
Pakistan’s expanded defense budget and China’s offer of advanced military hardware are set to further intensify the regional arms race, particularly with India, which has also increased its defense spending. The coming year could test Pakistan’s ability to balance military modernization with economic stability as the country navigates a tense security environment and complex geopolitical partnerships.
© 2025, GDC. © GDC and www.globaldefensecorp.com. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to www.globaldefensecorp.com with appropriate and specific direction to the original content.
