Pak hikes defence spending by 20% in budget amid tense relations with India

Islamabad: Pakistan on Tuesday increased its defence budget by 20 per cent, allocating PRs. 2,550 billion (USD 9 billion) for the fiscal year 2025-26, amid tensions with India.

Finance Minister Muhammad Aurangzeb

presented the PRs. (Pakistani Rupees) 17,573 billion worth federal budget for the fiscal year 2025–26 in the National Assembly.

He also presented the budget document as a finance bill in the National Assembly.

In his speech, the minister said that the government has “decided to allocate PRs. 2,550 for the defence of the country”.

He didn’t provide any further details about the defence spending as traditionally the defence budget is not discussed by the parliament.

Last year, the government allocated PRs. 2,122 billion for defence, reflecting a 14.98 per cent increase over PRs. 1,804 billion budgeted for the fiscal year 2023-24. “This budget is being presented at a historic time when the nation showed unity [and] determination,” the minister said at the start while mentioning the recent Pak-India conflict.

Tensions between India and Pakistan escalated after the April 22 Pahalgam terror attack, with India carrying out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir on May 7.