If Pakistanis want to get educated and prosperous than they have to first put all corrupt thugs in Pakistan on rope (hang them). But since Pakistanis love corruption and nepotism of their leaders and would themselves like to do that if given opportunity, they deserve what they are getting. Future could be bleaker.
As for defence budget and education: Pakistan defence budget as percentage of GDP has continuously decreased over the years and today it is almost half of what it was in late 1990s (as percentage of GDP). To see the true picture, look at Defence budget and compare that with corruption.
The breakdown of the defence budget for fiscal year 2011-2012 is as follow:
Employee salaries: Rs206 billion;
Operating expenses: Rs128 billion;
Physical assets: Rs117 billion;
And civil works: Rs42 billion.
That comes to Rs 493 billion
[Above figures excludes pension that could be ~ Rs 50 billion today. Pension was taken off defence budget by Musharraf and at the time it was Rs 27 billion].
Note: Military employees pay tax on their salary that comes to treasury. Plus, all salaries, pension, operating expenses and civil works expenses come back into economy]
Now come to corruption in last 4 years:
It is estimated by Transparency international that corruption during present government 4 years tenor was more than Rs 8500 billion (that must have increased a lot if last few months corruption is taken into account).
Thus in last 4 years corrupt thugs have looted equivalent to ~ 20 years Pakistan yearly defence budget. Unlike defence expenditure, most what was looted left Pakistan without paying tax or contributing to economy.
[Note: PPP government minister of finance himself confirmed that yearly corruption in FBR alone is over Rs 500 billion and that is more than Pakistan yearly defence budget.
On top of corruption, present government is spending ~Rs 300 billion every year (~60 percent of yearly defence budget) to dole out state owned enterprises so that the thugs government appointed at these enterprises do their loot and plunder of tax-payers money.
So, do not blame defence budget as that is drop in the ocean what political thugs are looting and plundering, and if defence budget would decrease further then nothing positive would happen other than thugs would loot and plunder that too.
Education: We should remember that in 2000 then Musharraf government declared Millennium Development Goals target for Pakistan with approval of UN development programme.
UNDP - Pakistan - MDGs in Pakistan
According to that goal, Musharraf government declared that Pakistan would aim to spend 7 percent of GNP on education. Education budget started increasing (though slowly) until 2007-08 and since then education budget has started decreasing fast (though PPP government still claims that aim of allocating 7 percent of GNP for education has not changed).