The announcement was made by Pakistan’s Finance Minister Muhammad Aurangzeb through the presentation of the federal finances within the Nationwide Meeting on Tuesday.
Pakistan has introduced a pointy 20 per cent enhance in its defence finances for the fiscal 12 months 2025–26, setting apart PRs 2,550 billion (roughly USD 9 billion). The choice comes simply weeks after India’s stealth Operation Sindoor dismantled key parts of Pakistan’s air defence and surveillance infrastructure.
The announcement was made by Pakistan’s Finance Minister Muhammad Aurangzeb through the presentation of the federal finances within the Nationwide Meeting on Tuesday. Unveiling a complete outlay of PRs 17,573 billion, Aurangzeb confirmed the substantial defence allocation throughout his speech and in addition tabled the monetary doc as a proper finance invoice earlier than the Home.
In his speech, the minister stated that the federal government has “determined to allocate PRs. 2,550 for the defence of the nation”. He didn’t present any additional particulars concerning the defence spending as historically the defence finances is just not mentioned by the parliament. Final 12 months, the federal government allotted PRs. 2,122 billion for defence, reflecting a 14.98 per cent enhance over PRs 1,804 billion budgeted for the fiscal 12 months 2023-24.
Pakistan units progress, fiscal targets
Aurangzeb additionally introduced a 4.2 per cent GDP progress goal for the financial system which is greater than the two.7 per cent achieved within the present 12 months ending on June 30. He stated that debt and curiosity servicing would value PRs 8,207 billion. Different key bills embrace PRs 971 billion for civil administration, PRs 1,186 billion for subsidies, PRs 1,055 billion for pensions and PRs 1,000 billion for the Public Sector Growth Programme. He stated that the goal for inflation was 7.5 per cent and the fiscal deficit goal was 3.9 per cent as the federal government additionally introduced to comprise the deficit and obtain a major surplus.
India-Pakistan tensions
Tensions between India and Pakistan escalated after the April 22 Pahalgam terror assault, with India finishing up precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir on Might 7. The on-ground hostilities from the Indian and Pakistan sides that lasted for 4 days ended with an understanding of stopping the army actions following talks between the administrators basic of army operations of either side on Might 10. The defence sector bills are the second-biggest element of the annual expenditure after the debt funds. The federal government allotted PRs 8,207 billion for debt servicing, which constitutes the only largest expense.
(With PTI inputs)
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