Pakistan's Finance Minister Presents the Country's Next Budget that Hikes Defense Spending
The increase comes as Pakistan faces higher security costs, with defence spending set to reach about 2% of GDP, officials said.
- On Friday, Finance Minister Muhammad Aurangzeb presented the government's new budget to Parliament, raising defense spending by 18% while trimming development funding and offering modest tax relief for salaried workers.
- The budget aligns with conditions under Pakistan's $7 billion International Monetary Fund program, which mandates higher revenues and structural reforms to reduce chronic fiscal deficits facing Prime Minister Shehbaz Sharif's government.
- Aurangzeb told lawmakers total spending would reach 18.77 trillion rupees , with the government targeting 4% economic growth and 8.2% inflation for the coming year despite persistent household price pressures.
- Regional tensions, including conflict with neighboring Afghanistan and the war in the Middle East, strain national stability; Kabul denies harboring Pakistani militants fighting the government in Islamabad.
- Lawmakers will vote on the proposal later this month as Pakistan's fiscal year 2026-27 begins on July 1, marking the deadline for legislative approval before the new budget takes effect.
23 Articles
23 Articles
Budget FY27: Govt tries to make sure IMF stays in good humour
Rs18.77trn budget presented • Rs7.02trn fiscal deficit targeted • Development expenditure squeezed • Tax collection target raised to Rs15.26trn • 4pc economic growth rate set • Defence spending up 18pc • Agriculture, retail and real estate sectors still remain unscathed from due taxation
Pakistan plans to utilize provincial funds as defense spending rises
ISLAMABAD: Pakistan plans to tap a portion of provincial funds to help meet its defense requirements over the next three years, Finance Minister Muhammad Aurangzeb said on Saturday. The statement came a day after Pakistan unveiled a Rs18.77 trillion ($67.49 billion) federal budget and increased its defense spending by around 18 percent to Rs3 trillion ($10.8 billion) for the
Defence budget raised by 17.6%
Faced with mounting security challenges on both its eastern and western frontiers and the emergence of new forms of warfare, the federal government on Friday proposed a 17.6% increase in defence spending for the fiscal year 2026-27, signalling Islamabad's growing concern over an increasingly complex regional security environment. The government allocated Rs3,010 billion for defence in the new budget, up from Rs2,557 billion in the outgoing fisca…
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