Pakistan Increases Defence Budget Following Pressure from India
In response to rising tensions with India, Pakistan's coalition government has approved an 18 percent increase in the defence budget for the upcoming fiscal year. The new budget, for the financial year 2025–26 beginning on July 1, is expected to be presented during the first week of June.
Against this backdrop, a delegation led by Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari met Prime Minister Shehbaz Sharif on Monday to discuss the upcoming budget. The PPP plays a key role in the coalition government. During the meeting, the participants agreed to increase defence expenditure by 18 percent as part of the new budget plan, which is estimated to be valued at PKR 17.5 trillion.
In the current fiscal year 2024–25, PKR 2,122 billion was allocated to the Ministry of Defence. This figure is now projected to exceed PKR 2.5 trillion. Defence remains the second-largest area of government spending, with the largest allocation being for debt repayments. For the current year, PKR 9,700 billion has been earmarked for servicing national debt.
Despite widespread public distress due to inflation, surging prices of essential goods, and ongoing economic turmoil, Pakistan's government is prioritising military strengthening over citizen welfare. According to analysts, this significant increase in defence spending is being perceived as a reaction to perceived threats from India.