Archive · 11 Jun 2025
Pakistan Hikes Defence Budget By 20%, Cuts Overall Spending
Pakistan is increasing how much it spends on its military.
This is happening after a conflict with India and while the country owes a lot of money.
The government hopes this new budget, which includes more money for the military, will help the economy grow.
They also aim to lower the amount of money they owe.
The government is working with the IMF, an international group that lends money.
Some experts are concerned that just changing how money is handled might not be enough to fix the problems.
Pakistan's defense budget increased by 20% to ₨ 2.55 trillion.
Overall expenditure was cut by 7%.
The increase comes after a military clash with India.
The budget anticipates 4.2% economic growth for the coming fiscal year.
Pakistan received $2.4 billion in financial aid from the IMF last month.
- Who
- The Shehbaz Sharif-led government.
- What
- Pakistan increased its defense budget by 20% and cut overall expenditure by 7%.
- When
- For the fiscal year 2025-26.
- Where
- Pakistan
- Why
- To address security concerns and stabilize the economy.
Prioritizing Security
Prioritizing Economic Growth
Resource Allocation
Prioritizing Security
Increased defense spending is necessary to address security concerns after clashes with India.
Prioritizing Economic Growth
Prioritizing defense spending over economic development may hinder growth and worsen debt.
- Defense Budget Increase
- 20%
- Total Defense Spending
- ₨ 2.55 trillion
- Overall Expenditure Cut
- 7%
- GDP Growth Target
- 4.2%
- Debt
- ₨ 76,000 billion
Sources
Can debt-ridden Pakistan afford to hike its defence budget?
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