Pakistan announces $62 billion budget 2025-26, raises defense spending by 20% to $9 billion
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Pakistan announces $62 billion budget 2025-26, raises defense spending by 20% to $9 billion
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UpdatePakistan announces $62 billion budget 2025-26, raises defense spending by 20% to $9 billion
Pakistan Finance Minister Muhammad Aurangzeb presents the federal budget for fiscal year 2025-26 at the National Assembly of Pakistan in Islamabad on June 10, 2025. (Photo courtesy: X/@NAofPakistan)
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Rs17.57 trillion ($62 billion) outlay represents overall decrease in spending by 7 percent
Total gross revenue of Rs19.28 trillion, total tax revenue of Rs14.1 trillion targeted
Updated 6 sec ago
ISMAIL DILAWAR
June 10, 2025 16:35
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KARACHI: Pakistan on Tuesday announced its federal budget for fiscal year 2025-26 with a total outlay of Rs17.57 trillion ($62 billion), an overall decrease in spending by 7%, but hiked the defense expenditure by 20% following a recent military conflict with nuclear-armed neighbor India.
Finance minister Muhammad Aurangzeb presented a budget that allocated Rs2.55 trillion ($9 billion) for defense spending in FY26, compared to Rs2.12 trillion in the fiscal year ending this month.
“This budget is being presented at a very important and historic moment when the nation in recent days showed extraordinary unity, determination and strength,” Aurangzeb said, referring to the recent military confrontation with India, in which the militaries of the two nations exchanged drone, missile and artillery attacks, with a combined 70 people killed on both sides.
Pie chart visualizing the breakdown of Pakistan’s Federal Budget 2025–26 (PKR 17.577 trillion) by major expenditure categories.(AN Photo)
“With this same national unity and determination, we should turn our focus to our economic strength, growth and welfare,” the finance minister said.
- With inputs from Reuters
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Topics: Pakistan Budget 2025-26
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Pakistan PM urges global powers to take ‘immediate action’ to end Israeli offensive in Gaza
Pakistan PM urges global powers to take ‘immediate action’ to end Israeli offensive in Gaza
Over 54,000 Palestinians have been killed since Israel launched its latest military offensive in Oct. 7, 2023
Pakistan has for decades called for establishment of independent Palestinian state based on pre-1967 borders
Updated 10 June 2025
Hasaan Ali Khan
June 10, 2025 15:46
61
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Tuesday urged world powers to take immediate action to end Israel’s military offensive in Gaza, saying he hoped innocent Palestinians would achieve their dream of freedom soon.
Over 54,000 Palestinians have been killed and much of the coastal enclave of Gaza devastated since Israel’s latest air and ground offensive began in October 2023, health authorities in Gaza say.
“The oppression, cruelty and barbarism taking place in Palestine and Kashmir — no matter how much we condemn it, it is not enough” Sharif said while addressing a federal cabinet meeting.
“But I believe this is a very critical time for the global powers to effectively use their influence to ensure a ceasefire in Palestine, because what is happening there is the shedding of innocent Muslim blood — the blood of little girls, children and parents.”
The Pakistani PM added:
“I have strong hope in Allah Almighty, God willing, that the people of Palestine will gain freedom, the people of Kashmir will gain freedom. They have made tremendous sacrifices.”
Pakistan has been calling for a ceasefire and unimpeded humanitarian access to Gaza since the latest war broke out.
Pakistan, which does not recognize Israel, has for decades called for the establishment of an independent Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.
Although nearly 150 countries have recognized Palestine statehood, most major Western powers including the United States, Britain, France, Germany and Japan, have not.
Muslim countries that do not recognize Israel include Pakistan, Saudi Arabia, Iran, Iraq, Syria and Yemen.
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Topics: Palestine Kashmir Gaza
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Pakistan shares range bound amid uncertainty over budget announcement
Pakistan shares range bound amid uncertainty over budget announcement
Index recorded intraday high of 970 points and low of 51 points, eventually closing at 122,024, gaining 383 points or 0.32 percent
Pakistan will unveil annual federal budget, seeking to kickstart growth while finding resources for hike in defense expenditure
Updated 10 June 2025
Arab News Pakistan
June 10, 2025 15:02
63
ISLAMABAD: The Pakistan Stock Market witnessed a range-bound session today, Tuesday, with the index fluctuating within a narrow band amid uncertainty surrounding the budget announcement.
Pakistan will unveil its annual federal budget for the coming fiscal year on Tuesday evening, seeking to kickstart growth while finding resources for an expected hike in defense expenditure following a military conflict with India last month, the worst between the nuclear-armed neighbors in decades.
Islamabad will also have to contend with remaining within the discipline of its International Monetary Fund program and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market.
“The index recorded an intraday high of 970 points and a low of 51 points, eventually closing at 122,024 — gaining 383 points or 0.32 percent,” brokerage house Topline Securities said in its daily market review.
“Market participation remained healthy, with total traded volume reaching 591 million shares and a traded value of PKR 21 billion.”
Media reports say the government is likely to present a 17.6 trillion rupee ($62.45 billion) budget for the fiscal year beginning July 1, down 6.7 percent from this fiscal year. It has projected a fiscal deficit of 4.8 percent of GDP, against a targeted 5.9 percent deficit in 2024-25, the reports say.
Analysts said they expect an increase of around 20 percent in the defense budget, likely offset by cuts in development spending.
Pakistan allocated 2.1 trillion Pakistani rupees($7.45 billion) for defense in the outgoing fiscal year, including $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defense budget.
The government of Pakistani Prime Minister Shehbaz Sharif has projected 4.2 percent economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7 percent, against an initial target of 3.6 percent set in the budget last year.
Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8 percent and 6.0 percent growth is expected in 2025, according to the Asian Development Bank.
With inputs from Reuters
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Topics: Pakistan Stock Exchange Pakistan Stock Exchange (PSX) Pakistan Budget 2025-2026
Pakistan deports over 216,000 illegal migrants since April under ongoing repatriation drive
Pakistan deports over 216,000 illegal migrants since April under ongoing repatriation drive
The drive against illegal foreigners was launched in November 2023 amid a surge in militancy
The country has repatriated a total of 1,102,441 illegal foreigners since the deportations began
Updated 10 June 2025
SAIMA SHABBIR
June 10, 2025 14:38
67
ISLAMABAD: Pakistan has deported over 216,000 undocumented foreign nationals since April this year as part of a nationwide campaign targeting illegal migrants, mostly Afghan citizens, the country’s interior ministry said on Tuesday.
The repatriation drive, which began in November 2023, was launched in the wake of a spike in suicide bombings and militant activity that Pakistani officials linked to Afghan nationals, though no public evidence was provided to support the claim.
“Since April 1, 2025, a total of 216,103 illegal foreigners have been repatriated and the campaign is ongoing,” the ministry said in its statement.
“Since October 2023, a total of 1,102,441 illegal foreigners have been repatriated under the Illegal Foreigners Repatriation Program,” it added.
Initially, authorities had said the crackdown would focus on those lacking any legal documentation. However, in early 2025, the government expanded the scope to Afghan Citizen Card (ACC) holders, ordering them to leave by March 31 or face deportation starting April 1.
The interior ministry said food and health care arrangements had been made for those in the repatriation process, and that women, children and the elderly are being treated “with dignity and respect.”
It warned that anyone aiding undocumented foreigners with employment or accommodation would also face legal action.
Pakistan has hosted more than 2.8 million Afghan refugees over the past four decades due to prolonged conflict in Afghanistan.
The current deportation campaign has drawn criticism from human rights groups and the Afghan Taliban, who have accused Islamabad of harassment and called for the safe and dignified return of Afghan nationals.
The Pakistani government has denied these allegations, maintaining the repatriation process is being carried out respectfully and in accordance with the law.
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Topics: illegal migrants
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The Pakistani delegation in London says .
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