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Defence gets Rs3tr amid security concerns​

Baqir Sajjad Syed
June 13, 2026

• Increase comes amid tensions with India, Afghan border concerns
• Allocation crosses 2pc of GDP after 17.6pc hike
• Military spending makes up nearly 16pc of federal outlay
• Rs967.55bn earmarked for salaries, allowances
• Military pensions budgeted separately at Rs822bn

ISLAMABAD: The federal government on Friday proposed allocating Rs3 trillion for defence services in fiscal year 2026-27, marking a 17.65 per cent increase over the outgoing year’s original allocation of Rs2.55tr, as it sought to sustain military preparedness amid continuing tensions with India, a deteriorating security situation along the Afghan border and persistent militant violence at home.

Finance Minister Muhammad Aurangzeb, while tabling the budget in the National Assembly, said Pakistan’s armed forces had delivered a decisive response to India’s aggression, forcing the adversary to retreat and demonstrating the country’s military preparedness and professional competence.

 

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Budget documents show that the outgoing year’s original defence allocation of Rs2.55tr was later revised upward to Rs2.58tr, continuing the longstanding pattern of actual military expenditure exceeding initial budget estimates.

The latest increase, though lower than last year’s roughly 20pc rise, remains significantly above the average annual growth in defence spending recorded over the preceding five years.

The increase comes against the backdrop of Pakistan’s military confrontation with India last year, continuing counterterrorism operations and growing concerns over militant safe havens across the border with Afghanistan.

A functional breakdown of the proposed allocation shows employee-related expenses remain the largest component of defence spending.

An amount of Rs967.55bn has been earmarked for salaries and allowances of serving military personnel and civilian employees, representing a 14.36pc increase over last year’s allocation of Rs846.03bn. The category accounts for 32.25pc of the total defence budget.

Operating expenses, covering fuel, transportation, rations, training, medical treatment and other day-to-day requirements, are projected to increase by 5.54pc to Rs743.46bn from Rs704.4bn in the outgoing year and would consume nearly one-fourth of the overall allocation.

The sharpest increase has been proposed under the physical assets head, which finances procurement of arms, ammunition, military equipment and related acquisitions.