Pakistan eyes higher defence spending in FY25–26 budget

May 26, 2025 (MLN): Pakistan raised its defence budget for the fiscal year 2025–26 following heightened tensions with India and New Delhi’s suspension of a key river water-sharing treaty, Planning Minister Ahsan Iqbal confirmed during a meeting with the Institution of Engineers Pakistan (IEP) in Lahore.

He emphasized the need to bolster the capacity of the armed forces, stating it was a national duty to ensure their preparedness in light of recent developments.

“It has been proven that we have a dangerous neighbour who attacked us in the night, but we gave them a befitting response. We must remain ready to respond if they attack again,” Iqbal stated.

The minister also addressed the federal budget timeline, explaining that the delay from the original June 2 date was due to Prime Minister Shehbaz Sharif’s upcoming five-day visit to friendly countries and the Eidul Azha holidays.

He clarified that the postponement was not because of any pressure from the International Monetary Fund (IMF).

The new date for the budget presentation is June 10, with the Pakistan Economic Survey set for June 9.

Iqbal noted that the government held successful talks with the IMF, which acknowledged Pakistan’s economic efforts.

He added that delaying the budget until after Eid would allow for smoother parliamentary proceedings.

Discussing development priorities, Iqbal revealed that only Rs1 trillion had been allocated for development, far less than the Rs3tr required to complete ongoing projects.

As a result, the government planned to cap lower-priority projects and fast-track those deemed essential, as per the press release issued.

On water security, the minister announced the acceleration of major dam projects, including Diamer-Bhasha and Mohmand, to secure Pakistan’s water resources.

He also highlighted that over 1,000 agricultural engineers currently training in China would return this year to help drive a second “Green Revolution,” aiming to develop local seeds and modernize dairy and livestock sectors.

Finally, Iqbal said the upcoming budget would include funding for an internship program designed to provide practical training opportunities for young engineers across the country, enhancing their job prospects.

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