Pakistan has approved a supplementary defence budget of PKR 50 billion (approximately ₹1,576.73 crore) to reinforce border security, upgrade naval infrastructure, and expand protection for key China-Pakistan Economic Corridor (CPEC) assets. The decision was taken during a meeting of the Economic Coordination Committee (ECC) chaired by Finance Minister Muhammad Aurangzeb.
Major Share Allocated to the Army and Navy
According to the Ministry of Finance:
- PKR 39 billion has been earmarked for the Pakistan Army,
- PKR 11 billion for the Pakistan Navy, primarily for upgrading two strategic naval bases.
The funds fall outside Pakistan’s regular PKR 2,550 billion defence budget for 2025–26, marking additional expenditure designated for targeted projects. Last year, the ECC cleared PKR 45 billion in supplementary allocations, reflecting a rise in off-budget military spending.
Boost for CPEC Security Divisions
With CPEC remaining central to Islamabad’s economic agenda—and a target for militant groups—dedicated security divisions have received enhanced funding:
- PKR 19 billion for Special Security Division South (19% increase from last year),
- PKR 8 billion for Special Security Division North,
- PKR 2 billion for fencing and surveillance along borders with Afghanistan and Iran, aimed at curbing smuggling, infiltration, and insurgent activity.
Internal Security and Paramilitary Support
The ECC approved:
- PKR 9.9 billion under the “internal security duty allowance” for Army personnel,
- PKR 150 million for the Pakistan Air Force,
- PKR 841.6 million for the Interior Ministry to reinforce federal civil armed forces involved in law enforcement, border control, and counter-insurgency.
Officials described these allocations as essential for maintaining stability amid economic strains and persistent cross-border threats.
Pakistan Navy to Modernise Strategic Bases
The Navy’s PKR 11 billion allocation is intended for the modernisation of two key installations vital for maritime patrols, logistics support, and operations in the Arabian Sea. These upgrades are expected to enhance:
- Coastal defence readiness,
- Protection of Gwadar Port,
- Integration of advanced surveillance and communication systems under Pakistan–China naval cooperation.
Development Comes Amid India’s Strong Security Signalling
The announcement coincided with assertive remarks by India’s Chief of Army Staff, General Upendra Dwivedi, at the Chanakya Defence Dialogue in New Delhi. Citing the rapid success of Operation Sindoor, he reaffirmed India’s readiness for multi-domain warfare, warning that any provocation from Pakistan would be met with a strong and decisive response.
General Dwivedi reiterated that “dialogue and terrorism cannot coexist”, emphasising India’s policy of treating terrorists and their state backers alike.
Strategic Implications
Pakistan’s supplementary defence outlay underscores its heightened focus on:
- CPEC protection,
- Border management with Iran and Afghanistan,
- Infrastructure upgrades along the maritime domain.
At the same time, India’s assertive posture highlights a broader trend of capability enhancement across South Asia.
The parallel developments point to continued militarisation of the regional security environment, with both countries prioritising deterrence, rapid capability upgrades, and infrastructure modernisation amid persistent strategic tensions.
