'A myth': Banker warns India’s defence budget gap with Pakistan isn’t what the numbers suggest

India may see an 8:1 advantage on paper when it comes to defence budgets against Pakistan. But what if that math is wrong?

Investment banker Paras Doda posted on LinkedIn that Pakistan’s military-industrial complex operates far beyond its declared $10 billion defence budget. According to Doda, the real financial might of Pakistan’s armed forces is hidden in plain sight, running a business empire now potentially worth over $60 billion.

“Back in 2007, a detailed academic study found that Pakistan Army directly controlled businesses worth over $20 billion,” Doda wrote. “Update that for 2024, you're likely looking at over $50–60 billion worth of assets and influence. Maybe more.”

The sectors under military control are wide-ranging — from fertilizers, cement, oil and gas, and banks, to insurance, food, logistics, airports, and housing. The army even owns 12% of Pakistan’s land, with estimated annual revenues exceeding $26 billion, according to various sources cited by Doda.

Once these figures are added to the official $10 billion budget, the picture shifts dramatically. “You're suddenly not talking about a 1:8 ratio anymore,” Doda argued. “It’s at best 1:2.5, maybe even 1:2.”

The banker points out that India defends four times more land and a coastline seven times longer, while managing threats from both China and Pakistan. Pakistan, meanwhile, focuses its military might and commercial muscle solely on India.

Doda’s key warning? Don’t fall for the budget trap. The Pakistan military’s real strength, he argues, comes not just from guns, but from the sprawling economic engine it controls.

“India’s long-term security won't just come from defence spend,” he wrote. “It’ll come from economic dominance — and a 5x-10x bigger economy that can sustain superior defence, diplomacy and deterrence.”