ISLAMABAD – Pakistani government is reportedly planning to jack up defense spending by Rs159 billion for fiscal year 2025–26, pushing the total allocation to Rs2,281 billion.
Reports in local media quoting sources said the proposed hike shows 7.49pc increase compared to the current fiscal year’s allocation of Rs2,122 billion. The increase is less aggressive than the previous year’s hike, when the defense budget moved up by 14.16pc.
The consistent upward trend in defense spending highlights the government’s continued prioritization of national security, especially as South Asian nation is facing uptick in militant attacks in several regions. The security situation also prompted calls for enhanced counterterrorism capabilities, border control, and military preparedness.
Despite ongoing economic challenges and limited fiscal space, officials indicate that national defense remains paramount in the federal budget. The relatively smaller increase for the upcoming fiscal year, however, reflects a more measured approach to budgeting, balancing security needs with economic pressures.
The above-mentioned numbers are preliminary along with other allocations, and are expected to be officially unveiled in federal budget presentation scheduled for June 2025.
Pakistan Defense Spending in previous years
| Year | Military Spending |
|---|---|
| 2022 | $10.34Billion |
| 2021 | $11.84Billion |
| 2020 | $10.41Billion |
| 2019 | $10.40Billion |
| 2018 | $11.75 Billion |
| 2017 | $11.49 Billion |
| 2016 | $10.00 Billion |
| 2015 | $9.51 Billion |
| 2014 | $8.68 Billion |
| 2013 | $7.66 Billion |
Surge in Terror Attacks
Parts of Pakistan, especially KP and Balochistan, has been ranked second in 2025 Global Terrorism Index, with terrorism-related deaths rising by 45pc, in what is said to be largest year-on-year increase in a decade, alongside a surge in terrorist attacks, which more than doubled to 1,099 incidents.
Baloch Liberation Army, Tehreek-i-Taliban Pakistan (TTP), and its splinter groups remained among growing terror groups, responsible for most deaths in Pakistan. The group has intensified its operations, taking advantage of the Taliban’s return to power in Afghanistan.
Other militant groups also escalated attacks, protesting government policies and foreign investments.
New Contributory Pension Scheme rolled out for Federal Employees
