Pakistan Unveils Rs18.77 Trillion Budget with Major Defence Boost
ISLAMABAD – Pakistan on Friday presented a federal budget of Rs18.77 trillion ($67.49 billion) for the fiscal year 2026-27, allocating a significant Rs3 trillion for defence, marking a substantial increase from the previous year.
Finance Minister Muhammad Aurangzeb, while presenting the budget in the National Assembly, announced that the defence allocation has been raised by approximately 18 percent compared to the outgoing fiscal year. This enhancement comes amid heightened regional security concerns and follows consultations between the federal government and provinces to create additional fiscal space for security-related expenditures. Provincial development plans were scaled back ahead of the budget to accommodate the defence hike.
“Defence spending has been increased considerably to make the country invincible due to the uncertainty in the region,” Aurangzeb told parliament.
According to budget documents, the allocation includes Rs1.28 trillion for the Pakistan Army, up from revised estimates of Rs1.18 trillion in the current fiscal year. The Pakistan Air Force has been allocated Rs573 billion, while the Pakistan Navy will receive Rs293 billion. Defence Production Establishments have been earmarked Rs848 billion.
While boosting security spending, the government limited federal development expenditure to Rs1 trillion, underscoring the fiscal constraints facing the country as it attempts to balance economic stabilization measures with public spending needs.
Defence Minister Defends Increased Spending
Defence Minister Khawaja Muhammad Asif on Friday defended the increase in defence spending, calling it a necessity given the evolving regional security environment and recent military developments. Speaking to journalists at Parliament House after the budget presentation, Asif said the enhanced allocation was essential to strengthen the country’s military capabilities and ensure national security.
“The increase in defence expenditure was the need of the hour. Our armed forces demonstrated exceptional performance during the recent conflict with India,” he said.
The minister noted that the regional situation had become increasingly unstable due to tensions involving Iran, Israel and the United States, while India under Prime Minister Narendra Modi continued to pursue what he described as aggressive policies towards Pakistan.
“In these circumstances, it is imperative to equip our armed forces in line with modern military requirements and further strengthen Pakistan’s defence capabilities,” Asif said.
He emphasized that Pakistan’s defence remained strong and that every soldier of the Pakistan Army was committed to safeguarding the country. Referring to the broader regional security landscape, the defence minister said the ongoing conflict involving Iran, Israel and the United States had created extraordinary circumstances affecting not only the region but the wider world.
“We believe all available resources should be utilized to make the country’s defence stronger than ever,” he added.
The federal budget for fiscal year 2026-27 allocates Rs3 trillion for defence services, reflecting the government’s emphasis on maintaining military preparedness amid growing regional uncertainties.
