Defence Budget Rises Sharply Amid India Tensions

ISLAMABAD (Web Desk) — The federal government has proposed a defence budget of Rs2.55 trillion for the fiscal year 2025-26, marking the largest increase in defence spending in over ten years. This rise comes amid growing tensions with India and recent military clashes between the two countries.

The new defence budget represents a 20.2% increase from last year’s allocation of Rs2.122 trillion. The spending now makes up 1.97% of Pakistan’s GDP, up from 1.7% last year, and is getting closer to 2% after years of decline. The increase also contrasts with the shrinking budgets for health and education, which account for less than 1% of GDP.

This year’s defence spending also takes up 14.51% of the federal budget, the highest share in recent years. Finance Minister Muhammad Aurangzeb explained that the armed forces have played a vital role in securing the country’s borders, especially given the tense security situation.

Key Details of the Defence Budget:

Operational and Infrastructure Costs: These will rise by over 37%, with Rs704.4 billion allocated for operational costs (fuel, food, training, medical care) and Rs336.5 billion for infrastructure projects.
Employee Expenses: A 3.8% increase is planned for salaries and allowances, with Rs846.03 billion set aside for this. Soldiers and officers will receive a special relief allowance.
Arms and Equipment: Spending on military hardware and weapons will rise by 20.9% to Rs663.1 billion.
Pensions: Rs1.055 trillion has been allocated for military pensions, up by 4.04%.

Breakdown by Service:

Army: Rs1.17 trillion (45.9% of total defense spending)
Air Force: Rs520.75 billion (20.4%)
Navy: Rs265.97 billion (10.4%)
Inter-Services Organizations: Rs498.11 billion (19.5%)

The increase in military spending comes as Pakistan faces rising security threats in the region. However, Pakistan’s defense spending is still far lower than India’s, which spends nearly nine times as much in dollar terms.

Overall, this year’s increase in defense spending reflects Pakistan’s effort to modernize its military and maintain readiness in light of regional tensions and security challenges.