Pakistan’s Defense Spending Climbs 11% to Reach $11.9 Billion in 2025

Pakistan’s defense outlays climbed by 11 percent, hitting $11.9 billion throughout 2025, largely fueled by the acquisition of advanced hardware following the previous year’s hostilities with India. This data comes from the latest global military expenditure analysis provided by the Stockholm International Peace Research Institute (SIPRI).

The report highlights that the surge was primarily tied to fresh contracts for aerial platforms and missile technology secured from China in 2025, following the military standoff between Pakistan and India that occurred in May. Settlements for long-standing procurement agreements nearing their conclusion further pushed the defense budget upward during this period. India, maintaining its status as the fifth-largest defense spender globally in 2025, also boosted its military budget amid sharp regional friction. According to SIPRI findings, India’s defense funding expanded by 8.9 percent, totaling $92.1 billion. The May 2025 conflict between the nuclear-armed neighbors forced India to increase investments after several of its combat aircraft were downed during engagements with the Pakistan Air Force. Updated capital funds for aviation systems jumped by roughly 50 percent over initial projections, while the Indian Air Force's running and staffing expenses rose by 18 percent compared to first estimates.

Global Overview

On a worldwide scale, defense spending maintained its upward trajectory, increasing by 2.9 percent in real terms to reach $2.887 trillion in 2025. This marked over a decade of continuous expansion in global military investments. From 2016 to 2025, the world’s collective defense expenditure has swelled by 41 percent.

Nevertheless, SIPRI observed that the growth momentum decelerated compared to 2024, when international spending spiked by 9.7 percent. The 2025 figures represent the most modest annual growth seen since 2021. The global military burden—calculated as a percentage of the world’s gross domestic product (GDP)—edged up from 2.4 percent in 2024 to 2.5 percent in 2025. Defense allocations made up an average of 6.9 percent of all government spending worldwide, a slight drop from the 7.0 percent seen a year earlier. Per person, global military costs reached $352 in 2025. Even with a dip in defense investments from the United States, the world's leading military spender, overall global figures continued to rise. SIPRI attributed this trend to substantial increases in European security budgets along with persistent growth across Asia and Oceania.

When the United States is excluded from the data, global military spending actually grew by a significant 9.2 percent during the year.