Govt to increase defence budget by 17.82% to Rs2,128 billion

The federal government has proposed increasing defence budget to Rs2.12 trillion or 17.82% in the upcoming fiscal year (FY 2024-25).

The proposed allocation for the armed forces is set at 1.7 percent of gross domestic product (GDP). It has declined by 0.3 percent compared to the previous years. 

In 2022-23, the armed forces's spending was around 2% of GDP.

However, the amounts of Rs662 billion allocated for pensions of retired military officers and Rs402 billion for the armed forces development programme were not included in the budget.

Last year, Rs1.57tr was allocated for defence affairs and services. However, it was later revised higher to Rs1.59tr.

In the fiscal year 2021-22, the size of Pakistan's defense expenditure was Rs1.412 trillion, the IMF informed.

The defence budget for the fiscal year 2019-20 was Rs1.316 trillion and Rs1.213 trillion and Rs1.147 for 2018-19 and 2017-2018, respectively.