KARACHI: Pakistan on Tuesday announced its federal budget for fiscal year 2025-26 with a total outlay of Rs7.57 trillion ($62 billion), an overall decrease in spending by 7 percent, but hiked the defense expenditure by 20 percent following a recent military conflict with nuclear-armed neighbor India.
Finance minister Muhammad Aurangzeb presented a budget that allocated Rs2.55 trillion ($9 billion) for defense spending in FY26, compared to Rs2.12 trillion in the fiscal year ending this month.
“This budget is being presented at a very important and historic moment when the nation in recent days showed extraordinary unity, determination and strength,” Aurangzeb said, referring to the recent military confrontation with India, in which the militaries of the two nations exchanged drone, missile and artillery attacks, with a combined 70 people killed on both sides.
“With this same national unity and determination, we should turn our focus to our economic strength, growth and welfare,” the finance minister said.
“The spirit with which we protected and strengthened our national sovereignty, we need to ensure our financial security and the welfare of the people with the same unity and strength.”
