In a significant move following heightened regional tensions, the federal government has increased the Pakistan defence budget 2025 to Rs2,550 billion, up from Rs2,122 billion last year.

Finance Minister Muhammad Aurangzeb announced the hike on Tuesday while presenting the Federal Budget 2025-26 in the National Assembly.

With a total budget outlay of Rs17.57 trillion and an economic growth target of 4.2%, Pakistan is aiming to bolster its security while keeping its economic trajectory on track. The finance minister emphasized that the increase in defence spending comes amid persistent national security threats.

Aurangzeb paid tribute to the armed forces, noting their “commendable service” in defending the country during Operation Bunyan-um-Marsoos, launched in response to Indian aggression last month.

The military conflict, which erupted after India falsely accused Pakistan of a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK), escalated into several cross-border strikes. The situation intensified when Indian forces targeted civilians in unprovoked assaults, triggering a powerful retaliation from Pakistan.

According to official sources, Pakistan’s armed forces downed six Indian Air Force (IAF) jets—including three Rafale fighters—and dozens of drones. The conflict, lasting 87 hours, ended on May 10 with a ceasefire brokered by the United States.

Recognizing the extraordinary efforts of the armed forces, the government also announced a special relief allowance for officers and personnel, which will be funded through the expanded Pakistan defence budget 2025.

This increased allocation reflects a broader commitment to national security in a time of regional volatility. While the budget maintains focus on economic development, defence readiness appears to be a top priority in light of recent events.