First of all, its not about use. I doubt the assertion itself, let alone the consequences. Moreover, the defence bill cannot go down even if Pakistan were to have no army or militia to back up. Given the international standards and the strategic development phase we are going through, its impossible for any country to bring down its military expenditures. What does a country like India do, when the neighbours like China are resorting to take war into space.
And the money thing you talked about, alot has to be done at many ends simultaneously. Poverty is not the root cause, the deadly devils are population and illiteracy.