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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.
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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.

·India
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The News broke the news in Pakistan on Monday, June 9, 2025.
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