Pakistan Defence & Security Report 2018
Pakistan's defence sector will see significant expansion in coming years amid deepening cooperation with externalpartners and strong government support. Export levels will continue to grow - particularly to developing countries looking foraffordable equipment. Domestic demand for military products will also remain robust; Islamabad is under pressure to maintaindefence spending growth, as the government must keep powerful military officials satisfied in order to ensure political stability, amidan intensified counterterrorism campaign and persistent tension with neighbouring India. We expect substantial investment intoequipment for counterterrorism operations in the next few years, and a gradually stronger focus on strengthening naval and airpower (both for which India retains superiority over Pakistan) over the longer term. That said, huge operational expenses linked toongoing operations will restrict funding for modernisation to some degree.
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