India, June 11 -- According to a recent World Bank report, the poverty rate in Pakistan is above 45%. Pakistan was saved from default by the 25th International Monetary Fund (IMF) bailout package last year. Amid recent hostilities with India, the IMF made a fresh commitment of $1.4 billion as part of its climate resilience funds. The Asian Development Bank (ADB) has also approved a $800 million loan. These funds are likely to be diverted to defence. It is against this backdrop that Pakistan's budget for fiscal year (FY) 2025-26, presented on Tuesday, has slashed development outlay by 50%, while the defence budget has been increased by 20%.

The budget for FY2025-26 reflects the interests of the military and Pakistan's elite. It has increa...