Opinion | Amid Economic Crisis, How Does Pakistan Continue Buying Advanced Weapons?

Despite mounting debt, inflation, and repeated bailouts, Islamabad continues to modernize its military. The answer lies in strategic priorities, foreign partnerships, and a security establishment that remains central to the country’s state structure.

Pakistan’s economy has endured one of the most difficult periods in its modern history. In recent years, the country has grappled with soaring inflation, declining foreign exchange reserves, currency depreciation, rising public debt, and repeated appeals for financial assistance from the International Monetary Fund. Yet even as ordinary citizens face economic hardship, Pakistan continues to acquire advanced military equipment, including fighter aircraft, naval platforms, missiles, and air defense systems.

This apparent contradiction raises an important question: how does a country struggling to stabilize its economy continue to spend heavily on defense modernization?The answer lies in a combination of historical security concerns, strategic alliances, financing arrangements, domestic political realities, and the unique position of the military within Pakistan’s state structure.

Pakistan’s economic challenges are well documented. The country has repeatedly turned to the International Monetary Fund for financial assistance, reflecting chronic fiscal imbalances and persistent external account pressures. Rising debt servicing obligations consume a significant portion of government revenues, leaving limited fiscal space for social spending and development.

Yet military expenditure has remained resilient. According to data released by the Stockholm International Peace Research Institute, Pakistan’s military spending increased by 11 percent in 2025, reaching approximately 11.9 billion dollars. This increase occurred despite continuing economic stress and fiscal constraints. The same database shows that defense expenditure has remained a consistent priority across successive governments.

Economists often note that defense budgets do not always move in tandem with broader economic conditions. In states facing perceived security threats, military spending is frequently insulated from cuts that affect other sectors.

Pakistan’s defense planners argue that military preparedness cannot be suspended because of economic difficulties.

Since independence in 1947, Pakistan’s national security doctrine has been shaped largely by its rivalry with India. Several wars, recurring border tensions, and periodic military crises have reinforced the belief within Pakistan’s security establishment that maintaining military capability is an existential requirement rather than a discretionary expenditure.

The military also plays a far larger role in Pakistan than armed forces do in many other democracies. Beyond defense, it has historically exercised substantial influence over foreign policy, security policy, and strategic planning. This institutional position helps ensure that defense modernization remains a high priority even during economic downturns.

Supporters of this approach argue that economic recovery itself depends upon national security and strategic stability. Critics counter that excessive defense spending diverts resources from education, healthcare, infrastructure, and economic development.The debate remains central to Pakistan’s policy discourse.A major reason Pakistan continues to acquire advanced weapons is its close defense partnership with China.

According to data from the Stockholm International Peace Research Institute, China has emerged as Pakistan’s overwhelmingly dominant arms supplier. Recent SIPRI assessments show that around 80 percent of Pakistan’s major arms imports originate from China. The relationship extends far beyond simple buyer and seller transactions.

Many systems used by Pakistan are jointly developed, co-produced, or supplied under long term strategic arrangements. The JF 17 Thunder fighter aircraft is perhaps the most prominent example. Developed jointly by Pakistan and China, the aircraft provides Pakistan with a relatively affordable platform compared with Western alternatives.China has also supplied advanced systems including J 10C fighter aircraft, naval frigates, missile systems, and air defense equipment.

Defense analysts point out that Chinese weapons often come with financing arrangements, technology transfers, deferred payment mechanisms, or favorable credit terms that reduce immediate fiscal pressure. Such arrangements make acquisitions more manageable than outright purchases on commercial terms.

For Beijing, Pakistan serves as both a strategic partner and a major market for its expanding defense industry. For Islamabad, China offers access to advanced technology at comparatively lower costs.

Another factor often overlooked in public discussions is the structure of defense procurement itself.

Large military acquisitions are usually spread over many years. Governments rarely pay the entire cost upfront. Instead, payments are staggered through long term contracts, installment schedules, export credit arrangements, and government to government agreements.As a result, headline figures associated with advanced weapons systems do not necessarily translate into immediate fiscal outflows.

Defense economists note that procurement commitments made during periods of relative stability often continue even when economic conditions deteriorate. Canceling contracts can trigger penalties, diplomatic complications, and capability gaps that governments may consider unacceptable.Consequently, military modernization programs frequently survive economic crises.

Pakistan has also sought to reduce dependence on expensive imports through domestic production. Institutions such as the Pakistan Aeronautical Complex and Heavy Industries Taxila manufacture or assemble a range of military platforms. While these industries still depend on foreign technology and imported components, domestic production lowers some costs and strengthens self-reliance.

Recent reports indicate that Pakistan is also attempting to expand defense exports. Following the operational use of certain Pakistani and Chinese supplied systems, interest from several countries has reportedly increased. Whether these discussions translate into major export contracts remains uncertain, but defense exports could provide a modest source of foreign exchange earnings in the future.

The continuation of military modernization inevitably raises questions about opportunity costs.Pakistan faces significant challenges in education, healthcare, water management, energy security, and employment generation. International development institutions have repeatedly highlighted the need for greater investment in human capital and economic productivity.

Critics argue that sustained defense spending during periods of economic distress limits resources available for these sectors. They contend that long term national strength depends as much on economic resilience and social development as on military capability.

Supporters of current defense policies respond that security threats remain real and immediate. In their view, weakening military preparedness would create vulnerabilities that could ultimately undermine economic recovery itself.This tension between guns and growth is not unique to Pakistan. Many countries confronting security challenges face similar policy dilemmas.

Pakistan’s continued acquisition of advanced weapons despite economic difficulties is not simply a matter of spending money it does not have. It reflects a deeper set of strategic choices shaped by history, geography, institutional power structures, and international partnerships.

The country’s leadership has consistently treated defense modernization as a national priority, even when confronted with severe economic constraints. Close ties with China, long term procurement arrangements, domestic defense production, and the military’s central role in state affairs have enabled these acquisitions to continue.

Whether this approach is sustainable over the long term remains an open question. Economic fundamentals ultimately place limits on every state’s ambitions. As Pakistan seeks to stabilize its economy and improve living standards, the challenge will be balancing legitimate security concerns with the equally urgent need for economic reform and social investment.

The future of Pakistan’s military modernization may therefore depend not only on strategic calculations, but also on whether the country’s economy can generate the resources necessary to support both national security and national development.

Stockholm International Peace Research Institute, Military Expenditure Database and Trends in World Military Expenditure 2025.Stockholm International Peace Research Institute, Arms Transfers Database and related reports on Pakistan’s arms imports.International Monetary Fund reports and program documents on Pakistan’s economy and fiscal reforms.

World Bank economic updates on Pakistan.Reuters reporting on Pakistan’s defense industry, military procurement, and arms export initiatives.South China Morning Post reporting based on SIPRI data regarding Chinese arms exports to Pakistan.Pakistan government budget documents and parliamentary records relating to defense expenditure.Academic studies on Pakistan’s civil military relations, defense economics, and security policy.

Dr Rashid drrashid2980@gmail.com