September 18, 2026

Pakistan to cut overall spending but raise defence budget in 2025-26, source says

Defence spending may rise to $9.04 billion following military conflict with India

Pakistan to cut overall spending but raise defence budget in 2025-26, source says
A man waves Pakistan's flag as he along with others gather in support of Pakistan Army, day after the ceasefire announcement between India and Pakistan, in Islamabad, Pakistan, May 11, 2025. REUTERS/Akhtar Soomro/File Photo

bdnews24.com

Reuters

Published : 11 Jun 2025, 02:47 AM

Updated : 21 Aug 2026, 01:23 PM

Pakistan's federal budget for fiscal year 2025-26 is expected to cut spending to 17.57 trillion rupees ($62.30 billion) from 18.9 trillion rupees in the previous year, a source said ahead of the announcement on Tuesday.

But it is expected to raise defence spending to 2.55 trillion rupees ($9.04 billion) from 2.1 trillion rupees in the previous year, the source said, following a military conflict with old foe India last month.

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