Pakistan increases defence spending by 18% amid tensions with India

Pakistan Increases Defence Spending by 18% Amid Tensions with India

In a significant development, Pakistan has announced an 18% increase in its defense budget, a decision that comes amid ongoing tensions with neighboring India. The increase reflects the country’s strategic priorities and is likely to impact the regional security dynamics in South Asia.

The decision to boost defense spending highlights Pakistan’s focus on enhancing its military capabilities at a time when geopolitical tensions in the region are high. This move is perceived as a response to the evolving security situation and the perceived threats from its eastern neighbor, India.

The increased budget allocation for defense is expected to fund modern weaponry, technological upgrades, and bolster Pakistan’s military preparedness. As two nuclear-armed nations, both Pakistan and India have historically maintained a delicate balance of power, and changes in defense spending by either country are closely monitored internationally.

While Pakistan fortifies its defense budget, the Indian stock markets have shown resilience and growth. As of May 5, 2025, the Indian equity benchmarks ended on a positive note. The Sensex rose by 295 points, and the Nifty 50 increased by 0.47% to close at 24,461.15. This bullish trend has been attributed to strong foreign inflows, positive sentiments around a potential India-U.S. trade deal, and a decline in crude oil prices.

The economic and military developments in both countries underscore the complex interplay between defense strategies and economic growth in South Asia. As Pakistan increases its defense budget, it will be crucial to monitor not only the implications for regional security but also how these changes influence diplomatic relations and economic interactions between the two countries.

For more details on the recent stock market trends, visit [BusinessLine](https://www.thehindubusinessline.com/markets/stock-market-highlights-5-may-2025/article69537324.ece).