Overview

• Pakistan has allocated 2.55 trillion rupees ($9 billion) for defence in 2025–26, a 20% increase from the 2.12 trillion‐rupee outlay in 2024–25.
• Total federal spending has been reduced to 17.57 trillion rupees ($62 billion), down 6.7% from the previous fiscal year.
• According to the Economic Survey, public debt hit a record 76,007 billion rupees by end-March 2025, its highest level ever.
• The budget targets a fiscal deficit of 3.9% of GDP and aims to lift economic growth to 4.2% next year.
• To comply with IMF loan conditions, measures include widening the tax base and cutting development spending to help finance the higher defence allocation.