Islamabad, June 11 -- Pakistan announced this week that it is raising its defense spending by a steep 20 per cent. The government of Prime Minister Shehbaz Sharif presented a budget that allocated 2.55 trillion rupees ($9 billion) for defense spending in FY26, compared to 2.12 trillion in the fiscal year ending this month. This comes after the country suffered serious setbacks from Indian strikes during Operation Sindoor.

Pakistan's allocation of 2.12 trillion rupees ($7.45 billion) for defense in the outgoing fiscal year included $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defence budget. Meanwhile, it is shrink...