Pakistan raises defence spending 18% in Rs18.77 trillion budget (opens in new tab)

Pakistan Finance Minister Muhammad Aurangzeb presented a Rs18.77 trillion, or about $67.5 billion, federal budget for fiscal 2026-27 to lawmakers on Friday, setting a 4% GDP growth target while projecting inflation at 8.2%. The plan raises defence spending to Rs3 trillion, an increase of about 18% from the previous year, while limiting the federal development programme to Rs1 trillion. The budget offers tax relief for salaried workers and businesses while the government tries to keep an Inter...