In the shadow of the recent India-Pakistan military clashes, defense spending has been increased by 20 percent since last year.

ISLAMABAD -- Pakistan Tuesday hiked defense spending by 20% following last month’s deadly conflict with India. The government of Prime Minister Shehbaz Sharif announced the increase as part of the budget for the fiscal year 2025-26, in which overall spending will be cut by 7% to 17.57 trillion rupees ($62 billion).

Pakistan will unveil its annual federal budget for the coming fiscal year later on Tuesday, seeking to kickstart growth while finding resources for an expected hike in defence expenditure following the conflict with India last month.