Pakistan unveils historic defence spending plan in new budget

ISLAMABAD: Pakistan has proposed increasing the defence budget to Rs 3,000 billion for the upcoming fiscal year, according to official budget documents.

For the current fiscal year, the defence budget was initially set at Rs 2,550 billion, while the revised allocation has reached Rs 2,595 billion.

The new budget proposal also includes Rs 822 billion for military pensions, compared to Rs 742 billion allocated in the current fiscal year.

Under administrative expenditures, Rs 10.9 billion has been proposed for the next fiscal year. In the current year, these expenses were set at Rs 7.95 billion, while revised figures have increased to Rs 11.74 billion.

Personnel-related expenditures in the defence sector are projected at Rs 967 billion for the upcoming year, up from Rs 846 billion allocated in the current budget and Rs 851 billion in revised estimates.

Operational expenses are proposed at Rs 743 billion for the next fiscal year, compared to Rs 704 billion in the current year and Rs 721 billion in revised spending.

The proposed allocations reflect an overall increase in defence-related expenditures amid evolving security and administrative requirements.

Finance Minister Muhammad Aurangzeb said the increase in Pakistan’s defense budget for the 2026–27 fiscal year was driven by internal security challenges in two provinces and broader border-related security concerns.

Speaking to media after presenting the federal budget, Aurangzeb said the government had to take into account the security situation along Pakistan’s borders while formulating defense allocations.

“The defense budget has been increased in view of security issues at two borders and the deteriorating law and order situation in two provinces,” he said.