Pakistan raises defence budget for 2026–27

Pakistan's defence spending is rising steadily, marked by a nearly 16% rise in the 2026–27 budget. (Janes Defence Budgets)

Pakistan has announced a defence budget of PKR3.01 trillion (USD10.8 billion) for 2026–27. The allocation extends a multi-year trend of sustained growth in Pakistan's defence spending, with annual increases remaining in double digits since 2023–24.

According to documents released by the Pakistan Ministry of Finance (MoF) on 12 June, the allocation for 2026–27 represents an increase of about 16% over the revised 2025–26 defence budget of PKR2.59 trillion.

The new defence budget comprises PKR3 trillion towards ‘defence services' and PKR10.9 billion towards ‘defence administration'.

The largest allocations under defence services in the 2026–27 budget are PKR967.5 billion for employee-related expenses, up about 14% from last year's revised expenditure, and PKR925.8 billion for physical assets, an increase of around 39% over the revised 2025–26 allocation.

Pakistan has allocated PKR743.4 billion towards operating expenses for the country's armed forces, up about 3% from the revised 2025–26 allocation of PKR721 billion.

The budget also includes PKR363.1 billion for civil works, a rise of about 4% from last year's revised budget.

A separate pensions appropriation in the federal budget provides PKR822 billion for the military, up about 11% from the 2025–26 allocation.

The funding allotted for defence administration in the new budget represents a decrease of about 7% over the revised 2025–26 budget and an increase of about 37% compared with the original funding.

The new budget reflects Pakistan's continued investment in its armed forces, with China remaining a key partner in the development and supply of future military platforms.