18% increase proposed in next fiscal year’s defence budget; Rs3 trillion allocation suggested

Islamabad: The federal government has proposed allocating Rs3 trillion for defence expenditures in the budget for the fiscal year 2026–27.

According to details, this amount represents an increase of approximately 18 percent compared to the previous year’s defence budget of Rs2.55 trillion, when Pakistan reportedly fought a brief but decisive war with India.

Finance Minister Muhammad Aurangzeb, while presenting the federal budget in the National Assembly, referred to the same conflict at the beginning of his speech, stating that Pakistan demonstrated its strong defence capabilities, which were acknowledged internationally. He said the budget is being presented at a time when Pakistan has established itself as a strong and dignified nation on the global stage.

He added that in response to last year’s Indian aggression, the Pakistan Armed Forces forced the enemy to retreat within a few hours. The Finance Minister described Operation “Bunyan-um-Marsoos” as an important chapter in national history, saying it was the result of years of professional training and preparation.

In his budget speech, he further stated that the world now recognizes Pakistan’s defence strength, and several countries have shown interest in Pakistani fighter aircraft.

He also noted that the defence industry is now becoming a source of foreign exchange earnings, proving that a strong defence is not only essential for national security but also important for economic development.

Announcing the defence allocation, the Finance Minister emphasized that national defence remains the government’s top priority, and therefore Rs3 trillion has been proposed for the sector.