Pakistan hikes defense budget 20% following conflict with India, but overall spending is cut
- Pakistan announced its fiscal year 2025-26 budget, cutting overall spending by 7% to 17.57 trillion rupees , yet increasing defense allocations by 20% amid recent tensions with India.
- The budget outlines a 3.9% fiscal deficit and aims for 4.2% economic growth.
- Adjustments are required to align with IMF rules and counter U.S. trade barriers.
66 Articles
66 Articles
Defence stocks surge continues after Operation Sindoor, but is it just a sentiment-driven spike
Success of indigenous systems on battlefield & expectation of increased military spending behind positive investor sentiment. But past flashpoints show such rallies can unwind quickly.
Pakistan scales up defence budget, but who is really fuelling it?
Pakistan, in its FY2026 Budget, has increased defence expenditure by 20, the largest hike in decades. This comes after setbacks from Indian strikes during Operation Sindoor and the shelving of projects worth PKR 1,000 billion. But with limited foreign exchange reserves and massive debt, how is Pakistan funding its military, and who is backing it?
Amid tensions with India, Pakistan has increased its defense budget by 20 percent for 2025-26. The total defense expenditure has reached 2550 billion Pakistani rupees.
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