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's federal budget for fiscal year 2025-26 is expected to cut spending to 17.57 trillion rupees ($62.30 billion) from 18.9 trillion rupees in the previous year, a source said ahead of the announcement on Tuesday.