Major Pakistan Defense Boost as China Military Ties Deepen
Pakistan is set to boost its defense budget by 17 percent, allocating $9 billion (2.55 trillion rupees) as tensions with India soar following a deadly flare-up in April.
In response to this heightened threat, Islamabad revealed that China has offered cutting-edge military hardware-including 40 J-35 stealth fighter jets and ballistic missile defense systems-signaling a significant escalation in their strategic alliance.
Newsweek has reached out to the Pakistani and Indian foreign ministries for comment.
This increase in defense spending underscores Pakistan's urgent focus on modernizing its military capabilities amid a volatile regional security environment. The rise in budget allocation comes after the most intense conflict with India in years, raising concerns about future escalation. Simultaneously, China's role as Pakistan's primary arms supplier is becoming more prominent, reshaping the military balance in South Asia.
Pakistan's finance ministry announced a defense budget increase to $9 billion (2.55 trillion rupees) for the 2025-26 fiscal year, up from $7.7 billion (2.18 trillion rupees) the previous year. Defense spending remains the country's second-largest budget item after debt servicing, underscoring Islamabad's prioritization of military strength despite significant economic challenges.
The recent conflict between India and Pakistan, in which dozens of people were killed, came in the wake of an attack on tourists in Indian-administered Kashmir. Pakistan denied Indian allegations of involvement in the attack.
Since 2019, China has supplied about 82 percent of Pakistan's imported weapons, a sharp rise from 51 percent during 2009–2012, according to data from the Stockholm International Peace Research Institute. This dependency is reflected in China's recent offer to sell Pakistan a comprehensive military package that includes 40 Shenyang J-35 stealth fighter jets, Shaanxi KJ-500 airborne early warning and control (AEW&C) aircraft, and HQ-19 ballistic missile defense systems, as confirmed by official Pakistani government statements and defense industry sources.
The J-35, still under development, is a fifth-generation stealth fighter comparable to the U.S. F-35 Lightning II. It features low-observable design, an internal weapons bay, and advanced radar for networked warfare.
The KJ-500 AEW&C aircraft boosts Pakistan's aerial surveillance with its large radar dish and active electronically scanned array (AESA) radar, providing 360-degree coverage vital for early threat detection. The HQ-19 missile defense system offers ballistic missile interception, an important asset for Pakistan's layered defense.
Pakistan also recently secured a $4.6 billion contract with Azerbaijan for 40 JF-17 fighter jets, co-developed by Pakistan Aeronautical Complex and China, further cementing its military-industrial partnership with Beijing.
Pakistan Finance Minister Muhammad Aurangzeb: "National defense is the most important priority of the government. For this national duty, Rs2,550 billion [$9.04 billion] will be allocated."
Pakistan Prime Minister Shehbaz Sharif: "After defeating India in a conventional war, now we have to go beyond it in the economic field as well."
Pakistan's expanded defense budget and China's offer of advanced military hardware are set to further intensify the regional arms race, particularly with India, which has also increased its defense spending. The coming year could test Pakistan's ability to balance military modernization with economic stability as the country navigates a tense security environment and complex geopolitical partnerships.
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On Monday, West Texas Intermediate crude futures rose to just under $74 a barrel, a 0.2 percent gain, less than the nearly 4 percent spike seen Sunday evening. Brent crude rose 0.8 percent on Monday to $77.62 a barrel, while West Texas Intermediate climbed by the same margin to $74.42 in early trading with prices going as high as $81 over the weekend before settling down. Tzabouras, from told Newsweek the closure of the Strait of Hormuz, even for a limited period, could trigger a surge in oil prices, potentially pushing them above $100 per barrel. Russia could get a boost from such a move and even though it's not easy to determine the impact on volumes, higher oil prices from such action would boost Russia's revenues. "This, in turn, could enable Moscow to continue funding the war in Ukraine and resist growing international pressure to end the hostilities," Tzabouras added. 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Larsen said that as well as a blockade, there are many other risks posed to the region such as Tehran's proxies, the Houthis who may attack in the Red Sea and Gulf of Aden merchant ships with affiliations to Israel or the U.S, with strikes against merchant ships with other affiliations also possible. BIMCO recommends merchant ships in the area to avoid the Iranian coast and maintain contact with naval forces in the area through U.K. Maritime Trade Operations (UKMTO). This infographic from Getty shows maritime tanker traffic in September 2024 through the Strait of Hormuz. This infographic from Getty shows maritime tanker traffic in September 2024 through the Strait of Hormuz. Getty Images What People Are Saying Nikos Tzabouras, senior market analyst at Tradu, told Newsweek on Monday: "Russia could emerge as a beneficiary if Iran were to close the Strait of Hormuz." President Donald Trump on Truth Social on Monday: "EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING! YOU'RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON'T DO IT!" Jakob Larsen, chief safety and security officer for the Baltic and International Maritime Council (BIMCO), told Newsweek: "It can't be ruled out that Iran will attempt a wider disruption of commercial shipping in the Strait of Hormuz through comprehensive attacks on merchant ships by for example antiship missiles or drones of both airborne and surface type." What Happens Next As The New York Times reported, U.S. officials have raised the need to prepare for the closure of the Strait. Meanwhile, military officials and analysts said missile and drone attacks are the biggest retaliatory threat by Tehran to U.S. bases and facilities in the region.
