The federal government is preparing to present the budget for the fiscal year 2025–26, with a key focus on accommodating an anticipated rise in defence spending following recent tensions with India.
Sources indicate that the upcoming budget’s total outlay is projected at over Rs. 17,600 billion, reflecting a 6.76% decrease from the Rs. 18,877 billion allocated for FY 2024–25.
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Despite the overall reduction, Pakistan’s defence budget is expected to see another increase, continuing the steady upward trend of recent years driven by evolving security challenges.
The government is likely to raise defence spending to around Rs. 2,500 billion for FY 2025–26, up from Rs. 2,122 billion allocated in the outgoing fiscal year.
Over the years, defence allocations have consistently grown. From Rs. 920 billion in 2017–18, the budget saw a 20% jump to Rs. 1,100 billion in 2018–19, followed by smaller yearly increases, eventually reaching Rs. 1,804 billion in 2023–24.
This sustained rise underscores Pakistan’s commitment to bolstering its defence capabilities in response to regional and global security dynamics.
