ISLAMABAD – The federal government has raised the defence spending to Rs2,550 billion for next fiscal year 2025-26, 20 percent higher than the Rs2,122 billion in the previous year, following a military escalation with India in May 2025.
Finance Minister Muhammad Aurangzeb presented the budget in the National Assembly, emphasizing on economic stability in the country.
Pakistan’s defence budget has seen consistent growth over the past several fiscal years. In the outgoing FY2024-25, the allocation reached Rs 2,122 billion, marking an 18% increase from the previous year. Before that, FY2023-24 recorded a 15% rise, with the budget standing at Rs 1,804 billion, up from Rs 1,563 billion in FY2022-23, which had seen a 14% expansion.
The preceding year, FY2021-22, witnessed a more modest 6% increase**, bringing the budget to Rs1,370 billion.
In his budget speech, the finance minister that this budget is being presented at a very important and historic moment. The nation demonstrated unity during the recent Pakistan-India war. I congratulate the military and political leadership on the success in the recent war. Pakistan’s stature has risen in the international community.
He said that by utilizing national determination and unity, our focus is now on economic development. Economic stability has been achieved through economic reforms. Several measures have been taken to improve the economy, inflation has significantly decreased, and remittances stood at 36 billion dollars over the past 10 months.
