Pakistan’s $7.6 bn Defence Budget Is Good News For China. Here’s Why

The defence budget is structured into key categories: employees’ expenses, operating costs, investments in physical assets, and civil works. Employees’ expenses, totalling PKR 815.186 billion, cover salaries, pensions, and allowances for military and civilian personnel. Operating expenses of PKR 513.328 billion encompass daily operational needs such as utilities and maintenance. Investments in physical assets, amounting to PKR 528.612 billion, are directed towards military hardware and systems, a significant area of collaboration with China. Lastly, PKR 244.874 billion has been allocated for civil works, including infrastructure projects within the defence sector.

How is China benefiting from it?

The increase in Pakistan’s defence budget is seen as beneficial for China, its primary arms trade partner, given the substantial investment planned in military hardware and infrastructure. According to a report by the Stockholm International Peace Research Institute (SIPRI), Pakistan is the fifth-largest arms importer in the world. From 2019-23, 82 per cent of its arms imports came from China.