Budget 2024-25: Pakistan’s Defense Budget Increased by 17%

The government has announced a budget of Rs. 2.12 trillion for the armed forces for the fiscal year 2024-25, which is 17.6% more than last year. This allocation is 1.7% of the GDP and is 12.33% of the overall current expenses. This marks the second year with a significant budget increase, following a 15% rise last year. However, this figure does not reflect the total military expenditure, as Rs. 662 billion for retired military personnel comes from the government’s expenditure, not the defense budget. Funding for major military projects and nuclear programs is also handled separately and not included in this budget. The allocation is distributed with the Army receiving 47.5%, the Air Force 21.3%, the Navy 10.8%, and inter-services organizations 20.3%. All branches will see an equal increase of 22.3% in their budgets. The largest increase is in the civil works category, followed by physical assets and operating expenses. Despite these increases, employee-related expenses remain the largest part of the defense budget.