Amid rising geopolitical tensions worldwide, Pakistan has announced plans to expand its defence budget by PKR 100 billion for the fiscal year 2026–27.
According to reports citing International Monetary Fund (IMF) data released after the completion of the third review of the USD 7 billion Extended Fund Facility (EFF) and the second review of the USD 1.4 billion Resilience and Sustainability Facility (RSF), defence expenditure for 2026–27 is estimated at PKR 2.665 trillion, up from PKR 2.564 trillion this year, an increase of about PKR 100 billion.
The IMF has projected Pakistan’s total federal revenues for 2026–27 to rise by PKR 2 trillion to PKR 17.144 trillion, indicating economic improvement partly driven by defence deals with Middle Eastern, North African and Southeast Asian nations.
Data released by the IMF also reveals that Islamabad is set to increase the overall expenditure of federal and provincial governments by 0.2 per cent of GDP, taking total spending to PKR 4.227 trillion, while digitising all federal and provincial government payments by June 2027.
Earlier, Pakistan’s annual defence budget was estimated to range between USD 7 billion and USD 13 billion annually, which could increase further in the coming years owing to fresh defence deals with Türkiye, the United States and China.
Pakistan has been aggressively modernising its defence capabilities since Operation Sindoor with India last year. The country has acquired high-tech Hangor-class submarines from China powered by air-independent propulsion (AIP) systems. Besides, it has also tested indigenously built short-, medium- and long-range missile systems in recent months.
Islamabad is expected to receive fifth-generation J-35A/E fighter jets from China in the coming days, while Türkiye is expected to provide a massive boost with the latest drones, missiles, and naval ships currently under process.
The rapid leap in procurement of defence technology is one of the most concerning developments for New Delhi as both sides consider each other sworn enemies.
Also read: Pakistan test-fires Fatah-4 cruise missile
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