ISLAMABAD: The federal government has proposed a significant increase in defense spending for the fiscal year 2026-27, recommending an allocation of 3 trillion rupees, up nearly 18% from the revised 2.595 trillion rupees budgeted for the current fiscal year.
According to budget documents, the proposed increase reflects the government’s focus on strengthening national security and addressing evolving regional security challenges. The defense allocation is expected to account for approximately 15% of total federal expenditures in the upcoming fiscal year.
The proposed distribution includes 1.284 trillion rupees for the Pakistan Army, 573 billion rupees for the Pakistan Air Force, and 293 billion rupees for the Pakistan Navy. In comparison, the current fiscal year’s allocations stood at 1.184 trillion rupees, 520 billion rupees, and 273 billion rupees, respectively.
The government has also proposed allocating 822 billion rupees for military pensions, compared with 742 billion rupees in the previous fiscal year.
Administrative expenditures for the defense sector have been estimated at 10.9 billion rupees. During the current fiscal year, these expenses were initially budgeted at 7.95 billion rupees but were later revised upward to 11.74 billion rupees.
Personnel-related expenditures are projected to rise to 967 billion rupees in FY2026-27, compared with revised spending of 851 billion rupees in the current fiscal year.
Operational expenses have been proposed at 743 billion rupees, exceeding the revised allocation of 721 billion rupees for the ongoing fiscal year.
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Government officials said the increase in defense spending is aimed at meeting operational requirements, personnel costs, pension obligations, and overall defense preparedness, underscoring the government’s priority of enhancing the country’s security and defense capabilities.
