Pakistan Raises Defence Budget 20% to Rs2.55 Trillion Amid Regional Tensions

Pakistan has announced a significant 20 percent increase in its defense budget for the fiscal year 2025-26, raising the allocation to Rs 2,550 billion to strengthen national security amid rising regional tensions, particularly with India. The budget allocates over Rs 1,165 billion to the Pakistan Army, Rs 520.74 billion to the Air Force, and Rs 265.97 billion to the Navy, with funds also set aside for military equipment, modernization, and special relief allowances for armed forces personnel. This defense spending hike comes despite an overall reduction in Pakistan's budget, which is shrinking by 7 percent, with the government aiming to balance military preparedness with economic stability in the face of inflation and rising debt. The increase is part of a broader federal budget of Rs 17,573 billion, where debt servicing remains the largest expenditure, and targets include GDP growth and inflation control. The budget also includes major allocations to civil administration, pensions, subsidies, and grants to support various welfare and development programs. The defense budget rise reflects Pakistan's commitment to maintaining peace and security following recent conflicts with India, which saw intense military engagements earlier in the year.