Budget 2025-26: Defense budget likely to increase by 20%

ISLAMABAD: Pakistan’s defense spending will likely increase by 20% to Rs2,550 billion in the 2025–2026 budget, according to media reports.

Sources estimate that the next fiscal year would see an allocation of Rs. 2,550 billion for defense.

According to reports, the three armed forces and inter-services departments would each get a proportionate share of the projected 20% rise in the military budget.

Defense spending totaled Rs2,122 billion in the current fiscal year, or 1.71% of the country’s GDP.

This marked a 17% increase compared to the previous fiscal year, during which Rs1,854 billion was spent on defence.

Earlier, the federal government has proposed an increase of 6.5 percent in salaries of government employees in the upcoming budget, while pensions are likely to be increase between 7.5 to 10 percent, according to sources.

The economic team will brief Prime Minister on the increase of salaries of the employees in high-level meeting chaired by the PM. Possibilities regarding increasing salaries by 10 percent are limited as per the sources.

The Prime Minister will hold final consultations with the cabinet regarding the proposals. The federal cabinet meeting is scheduled to be held at the Parliament House at 04 pm PST.