Defence Budget Spending Surge: Government Raises Military Allocation to PKR 3,000 Billion for FY27

ISLAMABAD — As National Assembly budget deliberations continue, Finance Minister Muhammad Aurangzeb has outlined a 17.6% increase in the country’s national defense spending, elevating the final allocation to PKR 3,000 billion for the fiscal year 2026-27. Presenting the broader PKR 18,771 billion federal layout, the government emphasized that this significant fiscal step is explicitly driven by regional security uncertainties. The Finance Minister noted that the spending strategy runs parallel to production-boosting industrial concessions, relying heavily on strict FBR automated enforcement rather than over-burdening regular taxpayers to achieve the targeted 4% GDP growth rate.