One of the foundational lessons in introductory economics concerns the central problem of scarcity and the critical choice of “what to produce.” This principle dictates that every society must decide how to allocate its limited resources between competing needs: consumer goods versus capital goods, essential items versus luxury commodities, and, in a broader sense, human welfare versus national security. It is a choice that defines a nation’s priorities and its vision for the future.
In an era of globalization, frequent economic disruptions, and climate crises, the role of government has crystallized around a core mandate: to ensure the welfare of its citizens. Effective governance is now universally measured by the provision of basic amenities—healthcare, education, infrastructure—and the creation of opportunities that foster an improved standard of living. Yet, Pakistan’s policymakers appear to have dismissed this economic and social imperative, steering the nation on a perilous course that serves the garrison over the citizen.
The Stark Choice: Militarization Over Development
Pakistan’s economy is in profound distress, surviving on life support from the International Monetary Fund (IMF) and grappling with soaring inflation, stagnant growth, and a debilitating debt burden. In this context, the fundamental economic question of “what to produce” becomes a matter of national survival. The logical, and indeed urgent, answer would be to invest heavily in socio-economic development: rebuilding infrastructure, expanding access to quality education, and generating employment for its burgeoning youth population.
However, the state’s priorities, as revealed in its most recent budget, tell a different story. A staggering 2.55 trillion rupees (approximately $9 billion) has been allocated for defense. This figure is part of a relentless upward trend; between the fiscal years 2016-17 and 2025-26, the defense budget has more than doubled. Crucially, this colossal sum does not even include the additional, crippling burden of military pensions, which places a further massive strain on the national exchequer.
This allocation reflects a deeper, structural pathology in Pakistan’s political economy. The military establishment continues to exert a dominant influence over national decision-making, often overriding elected officials and civilian institutions. This has created a system where national security is narrowly defined in military terms, consistently trumping human security.
The Human Cost: A Society Systematically Deprived
The opportunity cost of this militarized budget is devastating. While defense spending soars, investments in the very foundations of a stable society are being slashed.
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Education in Crisis: The total federal allocation for education has been brutally reduced by 44%, plummeting from 103.8 billion rupees to a mere 58 billion rupees. Even before this cut, Pakistan devoted a meager 1.9% of its GDP to education—below the South Asian average and a fraction of what is needed to build a literate, skilled workforce capable of competing in the 21st century.
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Healthcare Neglected: A similar tragedy unfolds in the health sector, where public expenditure stands at an abysmal 1% of GDP. This is far below the World Health Organization’s recommendations and leaves the vast majority of Pakistanis vulnerable to illness and catastrophic medical expenses, a weakness starkly exposed during the COVID-19 pandemic.
During his budget speech, Finance Minister Muhammad Aurangzeb spoke of the need to “change the economy’s structure.” Yet, these numbers reveal such statements to be hollow rhetoric. The government, constrained by IMF-imposed austerity and lacking the political will to challenge entrenched powers, is demonstrating that it has neither the capacity nor the intention to prioritize its people’s socio-economic needs.
A Vicious Cycle: Geopolitics and Economic Isolation
This precarious state is not a recent phenomenon but the culmination of decades of policy choices that have systematically deprioritized inclusive growth. A long-standing geopolitical rivalry with India has been used to justify a perpetual war footing, shaping a national agenda that neglects economic development at its core.
This strategy is ultimately self-defeating. As noted by the European Foundation for South Asian Studies, Pakistan’s historical support for regional militant groups has not only fueled internal security crises, such as the persistent threat from the Tehrik-i-Taliban Pakistan, but has also isolated the country internationally. This reputation for instability scares away foreign investment and prevents Pakistan from integrating into global supply chains—the very engines of modern economic prosperity. By choosing conflict preparedness over economic progress, the state is ensuring its own economic marginalization.
The Path Not Taken: A Plea for a Reformed Future
The ongoing preference for guns over bread, for barracks over schools, is a catastrophic failure to resolve the fundamental economic question. A reformed political structure that places citizen welfare at the heart of governance is not a utopian ideal but a strategic necessity. It requires a conscious, courageous shift: increasing the development budget and responsibly moderating military expenditure.
This will undoubtedly challenge long-entrenched institutional interests. However, the alternative is the continued decline of a nation with immense potential. The choice for Pakistan is clear: it can continue on its current path, prioritizing a militarized state over a thriving society, or it can choose to invest in its people, fostering the sustainable prosperity that is the only true foundation for national security. The current budget makes it tragically clear which path has been chosen.
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