In a significant move following heightened regional tensions, the federal government has increased the Pakistan defence budget 2025 to Rs2,550 billion, up from Rs2,122 billion last year.
Finance Minister Muhammad Aurangzeb announced the hike on Tuesday while presenting the Federal Budget 2025-26 in the National Assembly.
With a total budget outlay of Rs17.57 trillion and an economic growth target of 4.2%, Pakistan is aiming to bolster its security while keeping its economic trajectory on track. The finance minister emphasized that the increase in defence spending comes amid persistent national security threats.
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Aurangzeb paid tribute to the armed forces, noting their “commendable service” in defending the country during Operation Bunyan-um-Marsoos, launched in response to Indian aggression last month.
The military conflict, which erupted after India falsely accused Pakistan of a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK), escalated into several cross-border strikes. The situation intensified when Indian forces targeted civilians in unprovoked assaults, triggering a powerful retaliation from Pakistan.
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As per official reports, the Pakistan military shot down six Indian Air Force (IAF) jets-three Rafale combat aircraft- and scores of drones. The fighting lasted for 87 hours before it ended on May 10 with a US-brokered ceasefire.
In appreciation of the extraordinary work of the armed forces, the government also declared a special relief allowance for personnel and officers that will be paid for by the enlarged Pakistan defence budget 2025.
