Pakistan’s military spending increased by 11 percent to $11.9 billion in 2025, driven largely by new weapons procurement following last year’s war with India, according to the latest global military expenditure report released by the Stockholm International Peace Research Institute (SIPRI).

The report said the rise was mainly linked to new orders for aircraft and missile systems placed with China during 2025 after the armed confrontation between Pakistan and India in May. Payments for previously signed procurement contracts that are nearing completion also contributed to higher defense expenditure during the year.

India, ranked as the world’s fifth-largest military spender in 2025, also raised defense spending amid heightened regional tensions. According to SIPRI, India’s military budget grew by 8.9 percent to reach $92.1 billion.

The May 2025 war between the two nuclear-armed neighbors made India spend more after it lost multiple fighter jets duuring confrontations with the Pakistan Air Force. Revised capital allocations for military aircraft systems were about 50 percent higher than originally budgeted, while operational and personnel costs for the Indian Air Force were increased by 18 percent compared with initial estimates.

Globally, military expenditure continued its upward trend, rising by 2.9 percent in real terms to reach $2.887 trillion in 2025. This marked the 11th consecutive year of growth in worldwide defense spending. Over the past decade, global military expenditure has increased by 41 percent between 2016 and 2025.

However, SIPRI noted that the pace of growth slowed compared with 2024, when global spending surged by 9.7 percent. The 2025 increase represented the lowest annual growth rate since 2021.

The global military burden, measured as a share of worldwide gross domestic product (GDP), rose slightly from 2.4 percent in 2024 to 2.5 percent in 2025. Military spending accounted for an average of 6.9 percent of total government expenditure globally, marginally lower than 7.0 percent recorded a year earlier. Per capita global military spending reached $352 in 2025.

Despite a decline in defense spending by the United States, the world’s largest military spender, overall global expenditure continued to rise. SIPRI attributed this to sharp increases in European defense budgets alongside sustained growth in Asia and Oceania.

Excluding the United States, global military expenditure expanded by 9.2 percent during the year.

📢 For the latest Business news and analysis join ProPakistani's WhatsApp Group now!

Follow ProPakistani on Google News & scroll through your favourite content faster!

Shares