The federal government has proposed a record Rs2.55 trillion allocation for Pakistan’s armed forces in the 2025–26 budget — the largest annual increase in over a decade. This 20.2% rise from last year’s Rs2.122 trillion comes amid rising tensions with India and recent military clashes. Defence spending is now set at 1.97% of GDP, up from 1.7% last year, approaching the 2% mark after years of gradual decline. This boost contrasts sharply with reduced allocations for health and education, both falling below 1% of GDP. Defence will now account for 14.51% of the total federal budget — the highest share in recent years.