Pakistan hikes its defence budget by 20 percent following border clashes with India, as its fragile economy remains reliant on International Monetary Fund (IMF) loans.
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Islamabad, Pakistan – Pakistan has increased its defence spending by more than 20 percent – the most substantial hike in a decade – following last month’s military confrontation with neighbouring India.
Presenting the annual federal budget on June 10, Finance Minister Muhammad Aurangzeb proposed an allocation of 2.55 trillion rupees ($9bn) for the country’s three armed services – the army, air force and navy – amounting to 1.97 percent of Pakistan’s gross domestic product (GDP), up from 1.7 percent in the previous budget.
“The security situation in the country is precarious, and the armed forces have rendered commendable service in protecting the borders,” Aurangzeb said during his speech, as India has threatened to carry out strikes if armed groups carry out attacks on India or Indian-administered Kashmir.
