Pakistan Increases Defence Budget by 20% in 2025–26 | Rs 2.55 Trillion Allocation

Pakistan Increases Defence Budget by 20% in 2025–26 Amid India Tensions

Date: 16 June 2025

In a significant move, the Government of Pakistan has increased its defence budget by nearly 20% for the fiscal year 2025–26, raising the allocation to Rs 2.55 trillion (approx. $9 billion). This decision comes in the wake of recent military tensions with India and rising regional security concerns.

📌 Why the Sudden Increase?

• Recent border skirmishes with India raised national security alarms.
• Regional instability due to the ongoing Israel–Iran conflict also influenced the decision.
• The armed forces demanded better funding for equipment, training, and infrastructure.

📉 Economic Trade-Offs

While defence saw a boost, other sectors like public development and education faced a cut of nearly 7%. Economists are warning that this could put further pressure on Pakistan’s already fragile economy, especially with GDP growth projected at only 2.7% in FY2025.

💬 Government’s Statement

The Finance Ministry defended the decision, stating:

“National security is paramount. We must strengthen our defense forces to ensure sovereignty and regional stability.”

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🧠 Public Reaction

Citizens are divided on social media. While some support the increased spending for security reasons, others are questioning the timing, given the country’s economic challenges and inflation rates.

📈 What’s Next?

Experts suggest that Pakistan will likely continue its defense modernization plans through 2026. However, the long-term impact on the country’s debt, development goals, and social services remains to be seen.

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