Pakistan Boosts Defense Budget by 20% After Deadly Clash with India

Pakistan has increased its defense budget by 20 percent in response to last month’s deadly conflict with India—the most serious escalation between the two nuclear-armed neighbors since 2019.

The hike was announced as part of the government’s fiscal year 2025–26 budget, unveiled by Finance Minister Muhammad Aurangzeb in parliament on Tuesday. While overall government spending is set to decrease by 7 percent to 17.57 trillion rupees ($62 billion), the military will receive 14 percent of the total allocation.

The budget announcement follows Pakistan’s confirmation last Friday that it is in talks to acquire 40 Chinese fighter jets and new air defense systems, signaling a broader military modernization effort.

Tensions between Pakistan and India soared in May after a gun attack on tourists in Indian-administered Kashmir, which led to four days of cross-border clashes. The violence, which left more than 70 people dead, brought the two countries perilously close to war before a ceasefire was brokered.