ISLAMABAD – The federal government is all set to unveil the budget for upcoming fiscal year 2025-26 while finding resources for an expected increase in its defence budget following a recent escalation with India.
Reports suggest the total outlay of the Budget 2025-26 is more than Rs17,600 billion, which is 6.76 percent less that the Rs18,877 in outgoing fiscal year 2024-25.
However, the defence budget of Pakistan is expected to increase in the upcoming budget, continuing its upward trajectory of over the past fiscal years due to the country’s evolving security needs.
The government is likely to hike the defence budget of next fiscal year to Rs2,500 billion as compared to Rs2,122 billion which was allocated in outgoing FY2024-25.
In 2017–18, the defence allocation was Rs 920 billion. This was followed by a significant 20% rise in 2018–19, pushing the figure to Rs 1,100 billion. In 2019–20, the increase was more modest at 5%, bringing the allocation to Rs 1,153 billion.
The upward trend continued in 2020–21, with a 12% increase to Rs 1,289 billion. In 2021–22, defence spending rose by 6% to Rs 1,370 billion, followed by a larger 14% increase in 2022–23, reaching Rs 1,563 billion. The allocation further grew by 15% in 2023–24 to Rs 1,804 billion.
The trend in previous fiscal years highlights Pakistan’s consistent focus on strengthening its defence capabilities amid regional and global challenges.
