Pakistan Set to Boost Defence Budget Amid IMF Reforms

Pakistan plans to increase its defence budget by PKR 100 billion in the upcoming fiscal year, under an IMF-backed reform programme that foresees significant revenue growth. The government is focusing on fiscal adjustments, anti-corruption initiatives, and phasing out incentives for economic zones to create a balanced economic environment.

Pakistan is on course to raise its defence budget substantially by PKR 100 billion for the next fiscal year, aligning with the International Monetary Fund (IMF)-backed reforms aimed at boosting revenue generation.

The IMF staff report highlighted that defence spending for 2026-27 is estimated to reach PKR 2.665 trillion, reflecting the government’s fiscal strategy amidst an expected revenue surge to PKR 17.144 trillion.

Among other initiatives, Pakistan commits to tackling corruption by focusing on the most susceptible institutions and phasing out incentives in economic zones. These measures are part of broader economic reforms intended to foster a level playing field.