Lahore, April 14: The Government of Pakistan is preparing to increase its defense budget by Rs159 billion in the next fiscal year, taking the total allocation to Rs2,281 billion for 2025–26.
This represents a 7.49% increase compared to the current fiscal year’s allocation of Rs 2,122 billion. The planned hike, while notable, is more restrained than last year’s 14.16% surge, indicating a shift toward more calculated budgeting under growing economic pressure.
Security Still a Top Priority
Despite persistent financial strain and limited fiscal space, national defense remains a top priority for Islamabad. The proposed increase underscores the government’s resolve to strengthen security, particularly as militant activity continues to rise in key regions like Khyber Pakhtunkhwa (KP) and Balochistan.
Officials emphasize that this budget will help bolster counterterrorism capabilities, improve border control, and ensure greater military preparedness.
A Measured but Urgent Response
The government’s approach this year appears more measured. However, the urgency of the situation is clear. The increase in defense allocation comes as Pakistan was ranked second in the 2025 Global Terrorism Index, a worrying position for a country grappling with escalating violence.
Terrorism-related deaths have risen by 45%, marking the largest year-on-year increase in a decade. In parallel, the number of attacks more than doubled, hitting 1,099 incidents across the country.
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Militancy on the Rise
Militant outfits such as the Tehreek-i-Taliban Pakistan (TTP), Baloch Liberation Army (BLA), and affiliated splinter groups are behind most of these deadly incidents. These groups have grown more aggressive since the Taliban’s return to power in Afghanistan, leveraging regional instability to expand operations.
Their targets range from security personnel to foreign-backed development projects, with violence often concentrated in the country’s most vulnerable provinces.
Historical Defense Spending Trends
From $7.66 billion in 2013 to $10.34 billion in 2022, the budget has steadily risen in line with growing security needs and inflation.
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Though current plans reflect a more cautious increase, experts believe the focus on security infrastructure will continue well into the coming years.