Report: Pakistani defence budget expected to reach $15.8bn in 2022


Pakistan is anticipated to spend $64.4bn on defence over the 2018-2022 period, according to a report by Strategic Defence Intelligence (SDI).

Titled ‘Future of the Pakistani Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report forecasts the country’s defence budget to witness a compound annual growth rate (CAGR) of 11.63% from $10.2bn in 2018 to $15.8bn in 2022.

Between 2013 and 2017, Pakistan’s defence expenditure increased at a CAGR of 9.94%, from $6.3bn to $9.1bn. The trend is set to continue over the forecast period, mainly due to the government’s procurement plans.

"Between 2013 and 2017, Pakistan’s defence expenditure increased at a CAGR of 9.94%, from $6.3bn to $9.1bn."

Pakistan also faces territorial disputes with neighbouring countries and internal instability caused by radical terrorist groups, resulting in the need to strengthen its defence capabilities. Despite its small economy, the country is expected to spend 3% of its GDP on defence. The per-capita defence expenditure of Pakistan is forecast to increase from $47.2 in 2017 to $73.9 in 2022.

As a non-NATO ally of the US, Pakistan receives military aid that allows it to secure advanced arms and ammunitions to combat terrorism. The country is expected to procure fighters and multi-role aircraft, aviation maintenance, repair and overhaul (MRO), frigates and submarines during the forecast period.

Furthermore, Pakistan’s homeland security (HLS) expenditure, valued at $1.1bn in 2017, is expected to reach $1.6bn by 2022. The HLS mainly focuses on the prevention of drug smuggling, human trafficking, and cyber-attacks, which have been on the rise due to criminal and illicit activities within the country.