Pakistan Increases Defence Budget by 20% after Recent Clash With India
Islamabad (The Uttam Hindu): Pakistan has increased its defence budget by 20% as per the Budget for FY 2025-26 presented by Finance Minister Muhammad Aurangzeb. The spending o defence has increased to 2.55 trillion rupees ($9 billion) post India-Pak clash after pahalgam terror attack.
Defence Budget Details
1. FY 2026 Defence Allocation: 2.55 trillion rupees ($9 billion)
2. Increase: 20% compared to FY 2025
3. Previous Year's Allocation: 2.1 trillion rupees ($7.45 billion) (excluding military pensions)
Total Budget Outlay
The total outlay for the FY 2025-26 budget is 17.573 trillion rupees ($62 billion), representing a 6.9% decrease from the previous year's budget.
Economic Projections
The government has projected a 4.2% economic growth rate for FY 2025-26, indicating a stabilization of the economy. However, the growth rate lags behind the regional average, with South Asian countries expected to grow by 6% in 2025.
Additional Key Points
1. Taxpayer Base: Increased by 100% under the current government
2. Tariff Reforms: Planned to boost exports
3. Military Pensions: 563 billion rupees ($1.99 billion) allocated separately
4. Economic Challenges: Pakistan's debt reached 76,000 billion rupees by end-March 2025
The budget aims to balance defence spending with economic growth, while addressing the country's fiscal challenges.