Defence budget raised by 17.6%

ISLAMABAD:

Faced with mounting security challenges on both its eastern and western frontiers and the emergence of new forms of warfare, the federal government on Friday proposed a 17.6% increase in defence spending for the fiscal year 2026-27, signalling Islamabad's growing concern over an increasingly complex regional security environment.

The government allocated Rs3,010 billion for defence in the new budget, up from Rs2,557 billion in the outgoing fiscal year. The revised defence spending for 2025-26 stood at Rs2,595 billion, reflecting additional requirements to address an exceptionally difficult security year.

The increase comes at a time when Pakistan confronts a multi-pronged threat landscape. While tensions with India remain high despite the absence of active hostilities following last year's military confrontation, relations with Afghanistan have deteriorated significantly, marked by recurring border clashes, cross-border attacks and growing diplomatic friction.

Defence Minister Khawaja Muhammad Asif, defending the increase, said the rise in defence spending was a "national necessity", adding that Pakistan's armed forces had demonstrated "excellent performance" in the recent conflict with India.

Speaking to journalists after the budget presentation, he said the regional security environment had become increasingly imbalanced due to tensions involving Iran, Israel and the United States, while India under Prime Minister Narendra Modi was pursuing "aggressive designs" against Pakistan.

"The Indian leadership considers hostility towards Pakistan as a primary duty, therefore strengthening national defence and aligning military capability with modern requirements made the increase in the defence budget necessary," he told reporters.

He further said the enhancement was consistent with prevailing circumstances, adding that the conflict involving Iran, Israel and the United States had created an unusual situation not only in the region but globally, making it essential to strengthen national defence capabilities.

Officials and security analysts say Pakistan can no longer view its security challenges through a conventional military lens alone, as the country now faces a mix of traditional threats, terrorism, cyber warfare, information warfare and rapidly evolving technologies reshaping modern battlefields.

The latest budget documents show defence expenditure will account for about 2% of Pakistan's Gross Domestic Product (GDP), slightly higher than last year's 1.97%. The figures exclude Rs822 billion allocated for military pensions and Rs319 billion for the Armed Forces Development Programme.

According to the breakdown, Rs967 billion has been allocated for salaries and employee-related expenses, Rs743 billion for operating costs, Rs925 billion for weapons, ammunition and equipment, and Rs363 billion for civil works and infrastructure.

The proposed increase follows a surge in terrorist violence, particularly in Khyber-Pakhtunkhwa and Balochistan, alongside strained relations with the Taliban-led government in Kabul. Islamabad has repeatedly accused Afghanistan of allowing militant groups to use its territory for attacks inside Pakistan, allegations Kabul denies, but which have fuelled cross-border incidents and diplomatic tension.

On the eastern front, Pakistan continues to monitor developments in India after last year's military standoff, with officials warning that future crises could increasingly involve drones, precision weapons, electronic warfare and cyber capabilities rather than conventional troop movements.

The changing nature of warfare is also shaping defence planning, with analysts pointing to lessons from conflicts in Ukraine, the Middle East and South Asia, highlighting the growing importance of drones, artificial intelligence, space-based surveillance, cyber resilience and integrated air defence systems.

As a result, Pakistan is expected to accelerate modernisation efforts, including interest in next-generation fighter aircraft, possible acquisition of Chinese fifth-generation platforms, and expansion of indigenous drone and cyber warfare capabilities.

The budget increase also comes amid rising regional military spending. India has allocated around $86 billion for defence in its 2026-27 budget, a 15% increase from the previous year. The widening spending gap remains a concern for Pakistani planners, who argue that maintaining credible deterrence is essential for strategic stability.

Traditionally, defence allocations have triggered debate over whether resources should be directed toward development and social welfare. This year, however, such criticism has been relatively muted amid heightened security concerns and regional uncertainty.

(WITH INPUT FROM OUR CORRESPONDENT KHALID MAHMOOD)