Islamabad: Pakistan is expected to raise its defence budget by about PKR 100 billion in the upcoming fiscal year as the government prepares its budget under an International Monetary Fund (IMF)-backed reform programme that projects a sharp rise in revenues, according to a media report.
The Dawn newspaper, citing the IMF staff report issued 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), reported that defence expenditure for 2026-27 was estimated at Pakistani rupees (PKR) Rs 2.665 trillion, up from PKR 2.564 trillion this year.
The IMF projected Pakistan’s total federal revenues for 2026-27 at PKR 17.144 trillion – that’s more than PKR 2 trillion higher than the current fiscal year and represents a 13.5 per cent increase, the report said.
The IMF staff report highlighted that defence spending for 2026-27 is estimated to reach PKR 2.665 trillion, reflecting the government’s fiscal strategy amidst an expected revenue surge to PKR 17.144 trillion.
Among other initiatives, Pakistan commits to tackling corruption by focusing on the most susceptible institutions and phasing out incentives in economic zones. These measures are part of broader economic reforms intended to foster a level playing field.
