Lahore, May 24, 2025 — Pakistan intends to raise its defence budget 2025 for the fiscal year 2025–26 in light of escalating regional tensions and mounting security concerns, Planning Minister Ahsan Iqbal announced on Saturday.
While addressing reporters at the Institution of Engineers Pakistan (IEP) in Lahore, Iqbal attributed the decision to India’s recent hostile actions, including the suspension of a significant river water-sharing treaty.
Defence Budget to Rise Amid Regional Escalations
Iqbal underscored that bolstering Pakistan’s defence capabilities serves as a crucial national responsibility. “We must equip our armed forces with every essential resource to defend Pakistan’s sovereignty,” he remarked. Reflecting on India’s previous nighttime strike and Pakistan’s prompt counter-response, he pointed out the necessity for constant vigilance.
Moreover, he declared that the upcoming budget would include a considerable boost in defence spending. “We live beside a dangerous neighbour, and our preparedness must never waver,” he cautioned.
Budget Delay Not IMF-Driven
Meanwhile, Iqbal addressed concerns about the delay in the federal budget’s presentation. Contrary to speculation, he clarified that the postponement had no link to the International Monetary Fund (IMF). Rather, the government adjusted the schedule due to Prime Minister Shehbaz Sharif’s foreign visits and the approaching Eidul Azha holidays.
He further confirmed that the government will unveil the federal budget on June 10, with the Pakistan Economic Survey slated for June 9. “Our discussions with the IMF went well,” he noted. “They recognized and praised the reform measures we’ve implemented.”
Focus on Water Security and Engineering Development
In addition to defence, Iqbal highlighted the government’s efforts to enhance water security. To that end, it has prioritized major infrastructure projects such as the Diamer-Bhasha and Mohmand dams.
Furthermore, he introduced plans to provide internships to thousands of young engineers, aiming to improve their technical skills and job readiness. “We’ve sent over a thousand agricultural engineers to China for advanced training,” he shared. “When they return, they’ll spearhead a second Green Revolution, help develop local seeds, and modernize our dairy and livestock industries.”
Despite limited fiscal space, Iqbal mentioned that the government has allocated Rs1 trillion for development initiatives. In contrast, ministers had requested Rs3 trillion to complete all ongoing projects. As a result, the government chose to scale down or delay low-priority ventures while accelerating high-impact ones.
In conclusion, Iqbal reaffirmed Pakistan’s determination to face regional challenges head-on. He asserted that raising the defence budget 2025 remains a necessary and strategic move to ensure national security in the current geopolitical landscape.
