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

Last Updated:June 12, 2026, 16:02 IST

Pakistan’s armed forces had sought a 20-25% hike in defence spending, but sources said IMF pressure may limit the increase to around 6.6%.

Pakistan’s defence budget is likely to rise to around PKR 3,000 billion in the annual budget to be presented this evening, even as the country remains under pressure from the International Monetary Fund to control spending, top government sources told CNN-News18.

Sources said Pakistan’s armed forces had sought a much sharper increase of around 20-25 per cent, citing continued clashes with India and Afghanistan, internal security requirements and operational needs.

However, IMF pressure appears to have forced the government to scale down the hike, with sources saying the defence budget may get only around a 6.6 per cent increase against the demand made by the military establishment.

Last year, Pakistan had allocated around PKR 2,550 billion for defence spending. The proposed allocation of around PKR 3,000 billion would still mark a major increase in absolute terms, even as Islamabad struggles to meet IMF-linked fiscal targets.

The budget comes after weeks of deadlock within Pakistan’s economic decision-making system. Pakistan’s annual budget process had earlier hit a major roadblock, with the National Economic Council meeting postponed for the third time due to a lack of consensus between the federal government and the provinces.

The NEC meeting, which was to be chaired by Pakistan Prime Minister Shehbaz Sharif and attended by chief ministers of all four provinces, was expected to approve new development budgets and economic targets. However, the meeting was deferred again as differences over spending priorities, revenue sharing and budget cuts remained unresolved.

Top intelligence sources had earlier told CNN-News18 that the deadlock deepened because the Pakistan government was caught between pressure from the IMF and competing demands from the federation, provinces and the military establishment.

On one side, the IMF has been pressing Islamabad to tighten spending, expand the tax base and meet aggressive fiscal consolidation targets. On the other, the federal government faces heavy defence-related demands, while provinces have resisted proposed cuts in their share.

According to sources, the core areas of disagreement include the National Finance Commission award, revenue-sharing arrangements, proposed provincial share cuts and overall spending limits. The IMF has set a target for federal revenue to rise by over 13 per cent to PKR 17.14 trillion, sources said.

Despite the fiscal squeeze, defence spending continues to remain one of the most protected areas in Pakistan’s budget. Sources said the military may also receive additional funds during the year for security and operations inside the country if required.

This means the final defence-related expenditure could go beyond the allocation announced in the budget, depending on the security situation over the coming months.

The likely rise in military spending comes at a time when Pakistan’s development budget is under pressure. Sources said development expenditure may shrink or remain tightly controlled as the government tries to meet IMF-linked targets and manage disputes with the provinces.

The budget deadlock has exposed the competing pressures facing Islamabad: IMF conditions, provincial resistance, rising defence demands and growing public pressure over inflation and shrinking services.

While the government is expected to present the budget this evening, the defence allocation will be closely watched as a sign of how Pakistan is balancing economic stress with military priorities.

About the Author

Manoj Gupta

Group Editor, Investigations & Security Affairs, Network18

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

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