The terrorist attack in Pahalgam, which took 26 lives in April 2025, was a grim reminder of the volatility that defines India-Pakistan relations. The initial steps by the military, airstrikes, sending troops in, and mentioning the option of stronger acts were all foreseeable. More important than the short-term impact, however, is the way this new standoff has prevented India and Pakistan from investing their money in development, health, education, and assisting poverty-stricken people. The justification of an arms race for security is secretly threatening the basic security of people in South Asia.

A billion dollars spent on the military is a billion fewer dollars for human needs.

Both countries stepped up their defense efforts after the Pahalgam attack ended. Emergency purchases of hardware like security drones, counterinsurgency weapons, and cyber defense software were added to India’s 2024-25 military budget. The Pakistan government moved its troops close to the Line of Control and said it was boosting air defense and border security spending. According to SIPRI, a global think tank, both countries are considered top 10 defense investors despite their significant developmental problems.

As per the SIPRI, in 2024 India was the third country in the world to spend the most on defense, investing approximately $80 billion. In comparison, Pakistan spent 3.7% of its GDP on defense, much more than the world’s average for developing countries. This post-crisis buildup is not a one-time reaction but part of a long-term arms race that has consumed both countries for decades. The Pahalgam incident, rather than becoming a moment for introspection and regional cooperation, simply intensified this cycle.

A billion dollars spent on the military is a billion fewer dollars for human needs. With a defense budget of more than $73 billion (2024), India must deal with the major healthcare problem of over 500 million people going without quality public health services. Malnutrition causes about 35% of children under five to be stunted, according to the State of the World’s Children Report 2024 published by UNICEF. Pakistan, which regularly allocates over 3% of its GDP to defense, is experiencing serious budget issues, more unemployment, and deficient education, most noticeably among girls in rural regions. Pakistan has 22.8 million children who are not in school, ranking as the country with the second highest number worldwide, as stated by UNESCO.

Arms races encourage long-term instability and repel global investment.

UNDP’s 2024 Human Development Index places India in 134th place and Pakistan in 164th place among 193 nations. A high share of children in both nations is affected by malnutrition, inequality in education, and poor healthcare. Soon after the Pahalgam crisis, there was an increase in defense spending, but aid to public universities, progress in Baluchistan and interior Sindh, and climate adaptation plans were reduced or stopped. There is no doubt that more resources go to militarization than to saving lives.

Arms races don’t just use valuable resources—they encourage a long-term state of instability as well. Many global investors consider the South Asian region risky not just as a result of terrorism, but also because of the frequent uncertainty that arises from conflicts at the state level. After the military exchanges in April 2025, some foreign companies decided to remove themselves from development plans in both countries. The Pakistani rupee weakened more, according to Reuters, the regional war concerns played a role, whereas India saw unpredictable changes in its bond industry. Experts from the IMF and ADB have pointed out that without improvements in the region’s safety and security, its economy is unlikely to prosper.

One must ask, Who truly benefits from this cycle of militarization? Not the farmers in Sindh or the laborers in Uttar Pradesh. Arms manufacturers, both domestic and International, and hardliners who support nationalist and fearful ideals are the real beneficiaries. Whenever there is a conflict in South Asia, global defense suppliers notice more sales of surveillance equipment, artillery and technology to fight insurgency. Because war-making is more profitable, peace becomes less attractive to powerful firms. After the events at Pahalgam, SIPRI found that arms exports from U.S., French and Israeli companies to South Asia increased by nearly 12% in 2025.

Defense spending benefits arms manufacturers, not ordinary citizens.

Because of this, political actors are encouraged to maintain a hostile climate. Defense is used not only to defend the nation, but also to keep power and earn profits. After the Pahalgam disaster, many saw how quickly stories about security can be used for gain inside the country, even at the expense of long-term regional stability.

History offers powerful lessons. Those that redirected resources from arms to education and health, like South Korea, Rwanda and post-conflict Colombia, avoided more violence and prospered. The same can be said of South Asia. The progress towards peace and progress towards development go hand in hand. Just a little bit more of defense funds directed at education, healthcare, and technology could raise millions of people out of poverty over the next decade.

Of course, the situation is not only about money but also about politics. To de-escalate situations, we need courage, close regional teamwork, and a focus on ensuring people’s safety. Events after Pahalgam made it apparent how swiftly both countries could respond with action. At the same time, it helps us think: is what we’re doing now a sustainable approach? Or is it time to redefine security not as missiles and battalions, but as jobs, justice, and public health?

The real war South Asia faces is against underdevelopment, not each other.

Having an arms race between India and Pakistan serves no purpose and is a terrible waste. While politicians issue tough statements and armies are deployed, millions in both countries go without clean water, safe homes, or a sound education. The years beginning after Pahalgam should not be remembered solely through drone strikes or the press. We should learn from this: endless buildups in the military are hurting South Asia’s future.

Perhaps the next war won’t be in the form of a battle, but in places like classrooms without teachers, hospitals without medical help, and cities unable to withstand climate change. The real war is against underdevelopment, and right now, South Asia is losing.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.