Finance

Pakistan Defence Budget May Get a Whopping 114% Rise This Year

ISLAMABAD: The Pakistan defence budget may see a whopping 114% increase in the upcoming fiscal year 2025-26, with proposed allocations rising sharply from Rs5.386 billion to Rs11.554 billion. This proposed boost signals a major shift in national spending priorities toward defence and security.

Alongside this, the Ministry of Home Affairs is also expected to receive an increased development budget, rising from Rs9.78 billion to Rs10.91 billion, highlighting a growing focus on internal security.

However, this proposed surge in the Pakistan defence budget could come at the cost of several key civilian sectors, which face substantial budget cuts. The Ministry of Climate Change’s development funds are likely to be reduced from Rs5.26 billion to Rs2.784 billion.

The Ministry of Information Technology is expected to face a steep cut, with its allocation dropping from Rs23.93 billion to Rs13.53 billion. Similarly, health and education sectors may see reductions, with health funding proposed to fall from Rs24.75 billion to Rs15.34 billion and education from Rs20.75 billion to Rs19.68 billion.

The Higher Education Commission (HEC) is also projected to receive significantly less funding, with its allocation dropping from Rs61 billion to Rs45 billion.

Pakistan Railways’ development budget could be cut from Rs35 billion to Rs24.51 billion, and the Ministry of Science and Technology may see a decline from Rs6.65 billion to Rs4.79 billion.

The Ministry of Water Resources is likely to get Rs140 billion, down from Rs170 billion currently.

Even the Ministry of Defence Production might face reductions, with its development budget proposed to fall from Rs2.72 billion to Rs1.79 billion. The Special Investment Facilitation Council (SIFC) division’s funds may also be trimmed slightly from Rs523.1 million to Rs503 million.

This proposed budget underscores a clear priority on defence spending, while essential civilian sectors may experience significant financial constraints in the fiscal year 2025-26.