Pakistan to increase defence budget citing recent tensions

Planning Minister Ahsan Iqbal announced on Saturday that Pakistan will increase its defence budget for the fiscal year 2025-26, citing recent tensions with India and the suspension of a key river water-sharing treaty by New Delhi.

Iqbal made the statement while meeting a delegation from the Institution of Engineers Pakistan (IEP) in Lahore. He clarified that the federal budget would now be presented on June 10, with the Pakistan Economic Survey released on June 9, citing Prime Minister Shehbaz Sharif’s upcoming international visits and the Eidul Azha holidays for the delay—not pressure from the International Monetary Fund (IMF).

“We had very good negotiations with the IMF. They acknowledged our efforts,” said Iqbal. “The main reason behind the delay is the PM’s five-day visit to friendly countries and Eid after that.”

Iqbal emphasized that increasing defence spending is necessary to protect Pakistan’s sovereignty.

“It is our national duty to equip the armed forces,” he said, referencing recent border escalations with India.

The minister also outlined other key budget priorities:

• Water Security: Fast-tracking construction of Diamer-Bhasha and Mohmand Dams.

• Agriculture: Over 1,000 Pakistani agricultural engineers are being trained in China to lead a “Green Revolution 2.0” with a focus on developing local seeds and modernising dairy and livestock sectors.

• Youth Employment: Funding will support internships for engineers to boost job opportunities.

Iqbal noted that despite the need for Rs3 trillion to complete ongoing development projects, the government will work within a Rs1 trillion development budget, focusing only on high-priority initiatives.