"The joint military parade has been cancelled due to security reasons and deployment of troops at western borders engaged in the war against terrorism," a defence source was quoted as saying by the Dawn daily.
The parade used to be a regular event marking Pakistan Day, which commemorates the Lahore Resolution of 1940 and the adoption of the country's first constitution. The event displayed Pakistan's military power, folk and culture.
The parade was last held in Islamabad in 2008, when it was reviewed by Pervez Musharraf as a civilian president.
"We evaluated the security situation and availability of troops for this huge event, and consulted concerned security agencies which advised us not to go for this parade," the defence source said.