Pakistan, May 24 -- Pakistan is set to raise its defence budget to Rs2.8 trillion for the fiscal year 2025-26, marking a 32% increase from last year. This hike is mainly due to ongoing tensions with neighboring India, which the report describes as a "war-like situation." The increased funds will support new military recruitment and strengthen defence capabilities amid regional uncertainty.

According to Tola Associates, a tax advisory firm, defence spending in the current fiscal year may surge by 50% in the last quarter due to heightened security concerns. Historically, a large portion of defence expenses is incurred in the year's final months. The firm estimates Pakistan's total defence expenditure could reach Rs2.4 trillion by June 2025...