Pakistan Proposes Rs3 Trillion Defence Budget for 2026-27, Up 18%

The federal government has proposed a defence budget of Rs3 trillion for fiscal year 2026-27, marking an increase of nearly 18 percent compared to the revised allocation of Rs2.595 trillion for the current fiscal year.

Budget documents tabled in the National Assembly indicate that the proposed allocation is intended to address the country’s increasing security needs in light of ongoing regional developments. This figure represents nearly 15 percent of the total federal budget.

For the outgoing fiscal year 2025-26, the government had initially set aside Rs2.55 trillion for defence, which was later revised upward to Rs2.595 trillion. The newly proposed allocation for FY2026-27 is roughly Rs405 billion higher than this revised amount.

Allocation for Armed Forces

The Pakistan Army has been allocated Rs1.284 trillion, up from Rs1.184 trillion in FY2025-26. The Pakistan Air Force will receive Rs573 billion, compared to Rs520 billion previously, while the Pakistan Navy’s allocation has increased to Rs293 billion from Rs273 billion.

Overall, the defence allocation reflects an increase of approximately Rs405 billion over the revised estimates for the current fiscal year.

The budget documents also show that military pensions have been proposed at Rs822 billion for FY2026-27, up from Rs742 billion in the outgoing year. Employee-related expenditures are estimated at Rs967 billion, compared to a revised figure of Rs851 billion, while operational expenditures have been proposed at Rs743 billion, slightly higher than the revised estimate of Rs721 billion.

Administrative expenses for the upcoming fiscal year are projected at Rs10.9 billion. Notably, FY2025-26 administrative costs were initially budgeted at Rs7.95 billion but were later revised upward to Rs11.74 billion.

According to the budget documents, the government has prioritized defence and security needs, even as development spending faces constraints. The defence budget covers the operational costs of the armed forces, including salaries, allowances, and other military and defence-related expenses.