Shaheen ballistic missile of Pakistan army supplied by China

In late 2024, the United States imposed a sixth round of sanctions on a Pakistani firm and three Chinese companies involved in the development of the Shaheen-3 long-range ballistic missile. This missile system, operational since 2015, has a range of 2,700 kilometres, enabling it to target any military site in India.

Despite these sanctions, both China and Pakistan have chosen to ignore them, continuing their collaboration on weapons programs, including the ballistic missile development. Meanwhile, the U.S. continues to provide military aid to Pakistan.

For such a small and economically weak country Pakistan., boasts an impressive array of ballistic missiles. Its defence budget is officially $7.6 billion, accounting for 12.5% of the government budget and 1.7% of GDP. However, when accounting for military pensions and research efforts not included in the official budget, the actual defence spending increases by about 50%.

This means the military effectively receives around a quarter of the government budget and over 3% of GDP. The military also has significant economic interests, leading to the characterization of Pakistan as "an army with a country attached."

Pakistan's military spending is often misunderstood due to deceptive budget practices that exclude significant expenditures such as military pensions and research efforts. When these hidden costs are included, the official defence spending increases by approximately 50 percent. This adjusted figure reveals that the military receives about a quarter of the government's budget and over three percent of the country's GDP. The military's economic influence extends beyond its budget, as it owns a substantial portion of the economy through various businesses, such as real estate, banking, and manufacturing. This has led to the perception that Pakistan is effectively "an army with a country attached," where the military's interests often overshadow those of the civilian sector.

The high level of military spending is largely driven by perceived security threats, particularly from neighbouring India. Pakistan's defence budget has historically been prioritized over socio-economic development, contributing to a widening gap between economic growth and defence expenditure. Despite economic challenges, Pakistan continues to allocate significant resources to its military, often at the expense of other vital sectors. The lack of transparency in defence spending, coupled with corruption and the diversion of funds to military-owned businesses, further complicates the economic landscape.

The military's extensive economic holdings, including entities like DHA, FWO, Askari Bank, Fauji Cement, and Fauji Fertilizers, generate substantial revenue independently of the defence budget. However, these businesses also receive significant allocations from the government, raising questions about the efficiency and equity of resource distribution. The ongoing economic crisis in Pakistan highlights the need for fiscal reforms, particularly in defence spending, to ensure sustainable economic growth and social development. Yet, the military's entrenched influence over the country's decision-making processes makes such reforms challenging to implement.

Pakistan is one of the top ten military powers globally and the only Muslim-majority nation with nuclear capabilities. Its primary adversary is India, which has a much larger population and stronger economy and military. Decades of substantial defence spending have enabled Pakistan to develop and maintain a diverse ballistic missile force. Many of the missiles and its technologies have been clandestinely acquired either from China or North Korea.

This includes missiles like the Hatf -1, Abdali, Nasr, Ghaznavi, Shaheen-I, Ghauri, Ababeel, Shaheen-2, and Shaheen-3, each with varying ranges and capabilities. Additionally, Pakistan has developed cruise missiles with ranges up to 750 kilometres since 2007. While India has acquired air defence systems with some ballistic missile defence capabilities, Pakistan still has numerous unprotected targets within India's borders.

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