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PML-N, PPP agree on 18% increase in defence spending

  • On Monday, Prime Minister Shehbaz Sharif and the Pakistan Peoples Party delegation led by Bilawal Bhutto Zardari met in Islamabad to discuss the new budget framework worth about Rs17.5 trillion.
  • The meeting followed recent escalations with India, including the April 22 Pahalgam terror attack and India's punitive measures, which prompted a consensus to increase defence spending amid security concerns.
  • Both the ruling Pakistan Muslim League-Nawaz and the PPP agreed on an 18 percent rise in defence spending, raising the allocation to over Rs2.5 trillion in the 2025-26 budget starting July 1.
  • Defence spending currently forms the second-largest budget item after debt servicing, which amounts to Rs9.7 trillion, while the overall budget size is lower than last year's due to reduced interest expenses.
  • The increased defence allocation reflects heightened Indo-Pak tensions and signals the government’s intent to prioritize security within a fiscally disciplined budget framework set for early June unveiling.
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abbtakk.tv broke the news in on Monday, May 5, 2025.
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