Pakistan weighs three-year provincial contribution plan as defence spending rises

The defence spending is raised by 18 percent to $10.79 billion amid regional uncertainty

Police commandos carry bags containing copies of the 2026–27 fiscal budget at the Parliament House in Islamabad, Pakistan on Jun 12, 2026. REUTERS

Pakistan’s finance minister said on Saturday that provincial contributions to federal spending had been partly reflected in this year’s defence budget, adding that talks were under way on a three-year contribution framework.

Muhammad Aurangzeb told a post-budget press conference that the arrangement was in place for the current year, after the government raised defence spending by 18 percent to $10.79 billion amid regional uncertainty.