Govt proposes Rs3 trillion defence budget for FY27

News Desk 

Islamabad: The federal government has proposed a significant increase in defense spending for the fiscal year 2026-27, allocating Rs3,000 trillion for the sector amid growing regional security concerns.

According to budget documents presented in the National Assembly on Friday by Finance Minister Muhammad Aurangzeb, the proposed defense allocation is around 18 per cent higher than the revised allocation of Rs2,595 billion for the outgoing fiscal year.

• Govt proposes Rs3 trillion defence budget for FY27, up 18pc from current fiscal year.
• Pakistan Army to receive Rs1,284bn, PAF Rs573bn and Navy Rs293bn under new allocations.
• Defence spending to account for nearly 15pc of the total federal budget amid regional security concerns.
• Operational and employee-related defence expenditures proposed at Rs743bn and Rs967bn respectively.

The increase amounts to nearly Rs450 billion and accounts for roughly 15 per cent of the total federal budget for the upcoming fiscal year.

Under the proposed allocations, the Pakistan Army is set to receive Rs1,284 billion, compared to Rs1,184 billion in the current fiscal year. The Pakistan Air Force has been allocated Rs573 billion, up from Rs520 billion, while the Pakistan Navy’s share has been proposed at Rs293 billion against the previous Rs273 billion.

Read More: https://thepenpk.com/defense-taxes-and-salaries-dominate-budget-2026-27/

The budget documents state that the increase has been made in light of the prevailing regional security environment and the country’s defense requirements.

The government has also proposed Rs967 billion for employee-related expenditures, including salaries and allowances of officers and personnel. In the current fiscal year, Rs846 billion had originally been allocated for employees, later revised to Rs851 billion.

Operational expenditures for the armed forces have been estimated at Rs743 billion for the new fiscal year, compared to Rs704 billion in the current budget, which was later revised upward to Rs721 billion.

Meanwhile, administrative expenditures in the defense budget, revised to Rs11.74 billion during the outgoing fiscal year, have been projected at Rs10.90 billion for 2026-27.

The government’s latest fiscal plan indicates a greater focus on defense and security priorities, even as development expenditures face tighter fiscal space.

Defense allocations generally cover operational costs of the Pakistan Army, Air Force and Navy, along with salaries, allowances and other institutional expenses related to national security operations.