Pakistan announces 20 per cent hike in defence budget after suffering heavy blow in India's Operation Sindoor

Pakistan has announced a sharp 20 per cent increase in its defence budget for the fiscal year 2025–26, setting aside PRs 2,550 billion (approximately USD 9 billion). The decision comes just weeks after India's stealth Operation Sindoor dismantled key elements of Pakistan's air defence and surveillance infrastructure.

The announcement was made by Pakistan's Finance Minister Muhammad Aurangzeb during the presentation of the federal budget in the National Assembly on Tuesday. Unveiling a total outlay of PRs 17,573 billion, Aurangzeb confirmed the substantial defence allocation during his speech and also tabled the financial document as a formal finance bill before the House.

In his speech, the minister said that the government has “decided to allocate PRs. 2,550 for the defence of the country”. He didn’t provide any further details



about the defence spending as traditionally the defence budget is not discussed by the parliament. Last year, the government allocated PRs. 2,122 billion for defence, reflecting a 14.98 per cent increase over PRs 1,804 billion budgeted for the fiscal year 2023-24.

Aurangzeb also announced a 4.2 per cent GDP growth target for the economy which is higher than the 2.7 per cent achieved in the current year ending on June 30. He said that debt and interest servicing would cost PRs 8,207 billion. Other key expenses include 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 Development Programme. He said that the target for inflation was 7.5 per cent and the fiscal deficit target was 3.9 per cent as the government also announced to contain the deficit and achieve a primary surplus.