Pakistan’s recent launch of its third Hangor submarine highlights a stark contrast between rising defense spending and the growing hardships faced by its citizens amid soaring food prices and electricity costs.
The Pakistan Navy celebrated the launch of its third Hangor-class submarine at Wuhan’s Wuchang Shipyard on August 15, 2025. While naval officials hailed the event as a significant milestone in the modernization of the country’s underwater warfare capabilities, many Pakistanis viewed it as a troubling juxtaposition. The billions allocated for foreign-built submarines come at a time when households are grappling with soaring food inflation, increasing electricity tariffs, and diminishing purchasing power.
The Hangor submarine deal, signed in 2015, is estimated to cost between USD 5 billion and USD 6 billion. Under this agreement, four of the eight submarines will be constructed in China, while the remaining four will be assembled at Karachi Shipyard, utilizing a transfer-of-technology package. However, as fiscal constraints tighten, the trade-off between expensive prestige projects and the daily survival of citizens has become increasingly difficult to overlook.
In the federal budget for FY2025–26, Pakistan allocated PKR 2.12 trillion for defense, marking a 14% increase from the previous year. In stark contrast, the Benazir Income Support Programme (BISP), the country’s flagship welfare initiative, received only a 7% increase, bringing its total to PKR 460 billion. Development spending under the Public Sector Development Programme remained stagnant at PKR 1.25 trillion.
Debt servicing is projected to consume an astonishing PKR 9.6 trillion this year, surpassing the combined expenditures for development and welfare. The International Monetary Fund (IMF) noted in its March 2025 staff review that Pakistan’s policy framework continues to emphasize fiscal consolidation, with energy subsidy reform as a central component. This has led to increased fuel and electricity tariffs and tighter social spending, even as military allocations continue to grow.
The impact of these economic pressures is most acutely felt in households across the nation. Data from the Pakistan Bureau of Statistics revealed that food inflation reached 20.3% year-on-year in June 2025, with overall inflation at 17.4%. The prices of essential commodities such as wheat, sugar, and cooking oil have surged, pushing 42.3% of the population below the poverty line, according to the World Bank. The World Food Programme further reported that 82% of households are unable to afford a healthy diet, with food expenses constituting more than half of average household budgets.
Electricity tariffs have risen by more than 45% since 2023, as determined by the National Electric Power Regulatory Authority. This increase has forced families to ration their power usage amid ongoing rolling blackouts. The launch of a submarine in Wuhan stands in stark contrast to the candle-lit homes and long bread queues in cities like Karachi and Lahore, highlighting the disparity between military ambitions and civilian struggles.
For the leadership in Pakistan, the Hangor submarines symbolize strategic resolve and military advancement. Naval officials assert that these submarines will enhance underwater endurance and strengthen deterrence capabilities in the Arabian Sea. However, critics point out that despite three launches, the timelines for operational induction remain uncertain, the engines are untested in export scenarios, and achieving operational readiness could take years.
Analysts have also raised concerns about the disparity between the capabilities promised by the Hangors and India’s existing anti-submarine warfare capabilities. The Indian Navy currently operates 12 P-8I Poseidon patrol aircraft, four Kamorta-class corvettes, and a squadron of MH-60R Seahawks, which were commissioned in 2024. Additionally, the INS Arnala, a shallow-water anti-submarine warfare craft, was inducted in June 2025. For Islamabad, the undersea arms race is an expensive endeavor, while New Delhi has already accounted for its maritime defense needs.
The launch on August 15 not only provided a headline for Pakistan’s Navy but also intensified the divide between elite priorities and the pressing needs of the public. As households struggle with food insecurity, rising tariffs, and dwindling reserves, the funds flowing out for Chinese shipyards raise questions about national priorities.
“The scale of Hangor expenditures has no direct parallel among recent naval procurements, yet exact costs have not been disclosed by authorities,” noted Naval News following the Wuhan event. The lack of transparency, combined with the evident opportunity costs, places relentless pressure on ordinary families.
In 2025, the reality for many in Pakistan is a stark one: hungry families and expensive submarines.
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