Budget 2025-26: Military pensions get major boost with Rs742bn allocation

The federal government has massively increased the military pension budget for the upcoming fiscal year 2025-26, allocating Rs742 billion out of a total pension budget of Rs1,055 billion, marking an increase of approximately Rs66 billion compared to the current fiscal year.

According to budget documents, the allocation for military pensions in the ongoing fiscal year 2024-25 was initially Rs662 billion. 

However, revised estimates showed the expenditure has risen to Rs676 billion. The new allocation for 2025-26 represents a continued upward trend in military pension spending.

In contrast, the civilian pension budget has seen a relatively modest increase. For the next fiscal year, Rs243 billion has been allocated for civilian pensions, the same figure initially earmarked for the current fiscal year. 

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Revised estimates for 2024-25, however, indicated that actual civilian pension expenditure is expected to reach Rs234 billion, up from the originally budgeted Rs220 billion.

The documents showed an estimated increase of Rs14 billion in both military and civilian pension expenditures during the current fiscal year.

Cumulatively, the pension budget for FY 2025-26 stood at Rs1,055 billion, with 70 percent of the total, Rs742 billion, allocated for military pensions, and the remaining Rs243 billion for civilian pensions.