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ISLAMABAD, June 11: Pakistan has significantly increased its defense budget for the fiscal year 2025/2026, just weeks after escalating tensions with neighboring India nearly led to a fifth war between the two nations.
The newly announced budget raises military spending to 2.55 trillion Pakistani rupees (approximately $9 billion), marking a 20 percent rise compared to the current fiscal year, which concludes this month. This increase comes even as overall government spending has been reduced by 7 percent, now totaling 17.57 trillion rupees ($62 billion).
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The move aligns with Prime Minister Shehbaz Sharif’s push to stimulate economic growth while simultaneously strengthening the country’s military capabilities following the most intense clash with India in nearly 30 years.
In May, both countries exchanged missile strikes, drone attacks, and artillery fire over several days before agreeing to a ceasefire. The conflict was sparked by a deadly gun attack in Pahalgam, located in Indian-administered Kashmir, on April 22. India blamed Pakistan for supporting the assailants—an allegation Islamabad has strongly denied.
Economists had anticipated the 20 percent hike in defense spending, predicting it would likely be balanced by reductions in development expenditures, according to Reuters. In comparison, India’s defence budget for 2025–2026 stands at $78.7 billion—an increase of nearly 10 percent from the previous year—with further rises expected in upcoming fiscal plans.
