By Gilbert Dréan
Pakistan has declared a significant increase in defence expenditure in its latest budget, shortly after nearing a fifth conflict with its long-time rival, India.
The fiscal year 2025-2026 budget, revealed by the government on Tuesday, raises defence spending to 2.55 trillion rupees ($9 billion), marking a 20 percent increase from the current fiscal year, which concludes this month. This rise in defence spending occurs alongside a reduction in overall expenditures, which will decrease by 7 percent to 17.57 trillion rupees ($62 billion).
The budget aligns with Prime Minister Shehbaz Sharif’s objectives to stimulate economic growth while enhancing Pakistan’s military capabilities following the most severe tensions between the nuclear-armed nations in almost thirty years.
The two adversaries engaged in aerial and ground assaults using fighter jets, missiles, drones, and artillery for several days in May before a ceasefire was established. The conflict was ignited by a lethal attack by gunmen in Pahalgam, located in Indian-administered Kashmir, on April 22, which India alleged was supported by Pakistan. Pakistan refuted any involvement in the incident. Economists had anticipated a 20 percent increase in defence spending, suggesting it would likely be balanced by reductions in development budgets, as reported by the Reuters news agency.
In contrast, India’s defence budget for the 2025-2026 fiscal year, spanning from April to March, was set at $78.7 billion, reflecting an almost 10 percent rise from the previous year, with indications of further increases in future budgets.
