Myth 1.
Pakistan lost all 3 wars with India.
Pakistan and India have fought 3 wars - 1948, 1965 and 1971.
Barring 1971 (which occurred while a civil war, assisted by India, was raging in East Pakistan), no war has resulted in a decisive 'victory' for either side.
Indo-Pakistani War of 1947
Date October 21, 1947 - December 31, 1948
Location: Kashmir
Result: Ceasefire arranged by UN pending plebiscite. Princely state of Kashmir and Jammu dissolved. Pakistan takes control of roughly a third of Kashmir- the north-western scrublands, whereas India takes control of the Kashmir valley and most of Jammu.
Territorial changes: Line of Control divides erstwhile princely state of Kashmir and Jammu between the India state of Jammu and Kashmir (roughly 101,387 km²) and the Pakistan regions which subsequently became Azad Kashmir (13,297 km²) and the Northern Areas (72,496 km²).
Indo-Pakistani War of 1965
Date August September 23, 1965
Location: Indian subcontinent
Result: United Nations mandated ceasefire.[1] No permanent territorial changes (See Tashkent Declaration).
Indo-Pakistani War of 1971
Date 316 December 1971
Location: Eastern front: East Pakistan (now Bangladesh)
Western front: India-West Pakistan border
Result: Decisive Indian victory.
Eastern front: Pakistani forces surrender.
Western front: Ceasefire negotiated.
Territorial changes: Secession of East Pakistan as the independent state of Bangladesh.
Kargil War
Date MayJuly 1999
Location: Kargil district, Kashmir, India
Result: India regains control over Pakistani occupied ridges. Pakistan withdrew from Kashmir to pre-war Line of Control.
Territorial changes: Status quo ante bellum
Source: Wikipedia
Myth 4.
Pakistan spends 70% (or more, depending upon the Indian) of its budget on Defense.
Pakistan's defence budget for 2009 was about 4.4 billion USD. With a GDP of about 160 billion USD and a budget of 33 billion USD, that works out to be about 2.75% of GDP and 13.3% of the total budget.
PAKISTAN'S TOTAL OUTLAY IN 2007-08 BUDGET TO BE ABOUT US$33 BLN. | Goliath Business News
This compares with an Indian defence budget of about 26 billion that is 14.4% of the total budget and about 2.3% - so what's the big deal with Pakistan's defence budget?
I know that Pakistan doesn't spend 70% of it's budget on military expenditure. However Pakistan's defense budget has always been higher than India's. In 1998, when military expenditure of both countries was at it's peak due to nuclear projects; Pakistan's spending was just over 7% of it's GDP whereas India's was approx 3.8%. In recent years both country's military budget has gotten much lower.
India: 2.9% (2009)
Pakistan: 3.1% (2009)
An important point to note is that Pakistan does receive military aid from US (in terms of money)
"as an incentive for it to forcefully rid its country of terrorists that threaten Afghanistan and the United States" . However it is up to GoP to decide how it utilises this money.