Pakistan's new budget for fiscal year 2025-2026 sees a significant increase in defence spending to 2.55 trillion rupees ($9bn), up 20 percent from the previous year. This rise occurs even as the total budget shrinks by 7 percent, indicating a strategic prioritization of military expenditure, possibly in response to recent conflicts with India. The budget reflects Prime Minister Shehbaz Sharif's ambitions for economic growth while strengthening military capabilities after a recent uptick in hostilities between the nuclear neighbors, raising concerns about development spending cuts ahead.
The budget for the fiscal year 2025-2026 ramps up defence spending to 2.55 trillion rupees ($9bn), up 20 percent from the current fiscal year.
Prime Minister Shehbaz Sharif's budget reflects goals of growth while boosting the military amid the most serious conflict between Pakistan and India in decades.
The overall budget is shrinking by 7 percent to 17.57 trillion rupees ($62bn), indicating a significant prioritization of defence in a time of overall fiscal contraction.
Economists had expected a 20 percent boost in defence spending, likely offset by cuts in development spending, creating a concerning trend for Pakistan's growth.
#pakistan-budget #defense-spending #india-pakistan-relations #military-prioritization #fiscal-policy
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