Thu Jun 12 04:58:20 UTC 2025: **Pakistan Boosts Defence Spending by 20% Amidst Tensions with India**
Islamabad, Pakistan – Pakistan has announced a significant 20% increase in its defence budget, the largest in a decade, following recent border clashes with India. Finance Minister Muhammad Aurangzeb revealed the allocation of 2.55 trillion rupees ($9 billion) for the armed forces, representing 1.97% of the country’s GDP.
The move comes in response to a volatile security situation, including missile strikes and heightened tensions with India after attacks in Indian-administered Kashmir. While Islamabad denies involvement in the attacks, India has threatened retaliatory strikes.
The increased military spending occurs amidst Pakistan’s fragile economy, which relies on ongoing support from the International Monetary Fund (IMF). The IMF has provided a $7 billion loan program but insists on fiscal discipline, including expenditure streamlining and subsidy reductions. While overall budget has been reduced to 17.57 trillion rupees ($62bn), marking a 6.9 percent decrease from last year even as the defence spending has gone up substantially.
Analysts say the government must balance defence needs with economic stability and social welfare concerns. The opposition party has criticized the budget as “anti-people” and lacking measures to support agriculture and the broader population.
Economists point out that while Pakistan’s defence spending is high compared to its GDP, it’s still lower than some other nations but the low tax to GDP ratio means that defence spending is a bigger burden for the government in Pakistan than most other countries in the world. They emphasize the need for structural reforms to ensure long-term economic growth alongside robust defence capabilities.
First Piper 