Pakistan To Unveil Budget Today, Defence Spending May Touch PKR 3,000 Billion | Exclusive

Pakistan will unveil its annual budget today, with defence spending projected to hit PKR 3,000 billion, up from PKR 2,550 billion last year. The increase reflects a compromise between the military’s request for a 20-25% hike—citing border clashes with India and Afghanistan, internal security needs—and IMF demands to curb expenditures. The government scaled back the proposed rise to around 6.6%, sources told CNN-News18, as Islamabad struggles to meet IMF-linked fiscal targets. The IMF has pushed for stricter spending controls, a 13% revenue increase to PKR 17.14 trillion, and cuts to provincial shares, deepening disputes over budget priorities. The budget process faced delays after the National Economic Council meeting was postponed for the third time due to disagreements between the federal government and provinces. Key conflicts include the National Finance Commission award, revenue-sharing arrangements, and proposed cuts to provincial allocations. Defence spending remains a protected area, with the military potentially receiving additional funds for security operations if needed. Meanwhile, development expenditure may shrink further as the government balances IMF demands with provincial resistance to budget cuts. The final defence-related spending could exceed the announced allocation, depending on security conditions in the coming months. Pakistan’s economic challenges persist amid pressure to tighten fiscal policies while addressing military and provincial demands.