Pakistan Ups Defence Budget by 20% Amid Rising Tensions with India

Pakistan has increased its defence budget by 20 per cent for the fiscal year 2025-26, allocating PRs 2,550 billion, amid ongoing tensions with India. Finance Minister Muhammad Aurangzeb presented the federal budget, noting substantial rises in spending on defence, debt servicing, and economic growth targets.

Pakistan's government has announced a significant 20 per cent increase in its defence budget for the fiscal year 2025-26, amidst escalating tensions with neighboring India. Finance Minister Muhammad Aurangzeb revealed a substantial allocation of PRs 2,550 billion (USD 9 billion) dedicated to defence spending.

Presenting the federal budget in the National Assembly, Aurangzeb highlighted the rise in defense expenditure alongside the total federal budget of PRs 17,573 billion. Emphasizing national unity, the minister linked the budgetary expansion to recent conflicts with India and underscored the need for preparedness.

Despite the increase in defence spending, the most significant allocation remains debt servicing at PRs 8,207 billion. Other key financial targets include a GDP growth projection of 4.2 per cent, a controlled inflation target of 7.5 per cent, and ambitious tax collection goals for the Federal Board of Revenue.

(With inputs from agencies.)