Pakistan Defence Budget 2026-27: How Much Does Pakistan Spend?
Short answer: Pakistan’s defence budget for FY2026-27 (1 July 2026 – 30 June 2027) is PKR 3.01 trillion, about USD 10.8 billion at the ~279 PKR/USD rate of mid-June 2026, according to the Ministry of Finance’s Budget in Brief 2026-27. That is 17.65% above the original FY2025-26 allocation of PKR 2.55 trillion, equal to 2.08% of projected GDP and 15.9% of total federal outlay. Military pensions (PKR 822 billion) are booked separately and are not included in the 3.01 trillion figure.
Last updated: 17 September 2026
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How much is Pakistan’s defence budget in 2026-27?
The single authoritative number is the one printed in the Ministry of Finance’s Budget in Brief 2026-27, published with the federal budget in June 2026: PKR 3.01 trillion under the head “Defence Affairs and Services”. It comprises PKR 3.00 trillion for defence services (Army, PAF, Navy, inter-services organisations) plus PKR 10.9 billion for administration. Every dollar, GDP-share or growth figure in the press is derived from this rupee number.
Converted at the roughly 279 PKR/USD rate that prevailed between 12 and 15 June 2026, the allocation is worth about USD 10.8 billion (Janes, 15 June 2026). Always quote the dollar figure with its exchange-rate date: a 5% move in the rupee shifts the headline by half a billion without a single rupee being added, which is why this page treats the rupee as primary.
Dawn’s analysis of 13 June 2026 puts the allocation at 2.08% of projected nominal GDP (PKR 143.6 trillion). Business Recorder puts it at 15.9% of the total federal outlay of PKR 18.77 trillion and 17.2% of current expenditure (PKR 17.495 trillion).
Pakistan defence budget by year: FY2024-25 to FY2026-27
The last three budgets trace a steep upward path. FY2025-26 was itself a 20% jump over FY2024-25, announced weeks after the May 2025 India-Pakistan crisis; FY2026-27 adds another 17.65%. Against the revised FY2025-26 figure of PKR 2.59 trillion, which reflects in-year supplementary spending, the rise is about 16%.
| Fiscal year (1 Jul – 30 Jun) | Defence Affairs & Services | Change | USD equivalent (rate and date) | Source |
|---|---|---|---|---|
| FY2024-25 | PKR 2.12 tn | — | Not stated in the sources used here | Reuters, 10 Jun 2025 |
| FY2025-26 (original) | PKR 2.55 tn | +20% vs FY2024-25 | ~USD 9.0 bn @ 282 PKR/USD (10 Jun 2025) | MoF Budget in Brief 2025-26; Reuters |
| FY2025-26 (revised) | PKR 2.59 tn | +1.6% vs original (in-year) | — | Janes, 15 Jun 2026 |
| FY2026-27 | PKR 3.01 tn | +17.65% vs original FY25-26; ~+16% vs revised | ~USD 10.8 bn @ ~279 PKR/USD (12-15 Jun 2026) | MoF Budget in Brief 2026-27; Dawn 13 Jun 2026; Janes |
Military pensions and the “real total” debate
Pakistan books military pensions outside the defence head. In FY2025-26 the military pension bill was PKR 742 billion (about USD 2.63 billion at the time); in FY2026-27 it rises 10.8% to PKR 822 billion. Analysts seeking the full cost of the armed forces add the two lines: PKR 3.292 trillion (~USD 11.67 billion) for FY2025-26 and roughly PKR 3.83 trillion for FY2026-27, roughly USD 13.7 billion at the same ~279 rate (Envanter Medya calculation, not an official figure).
Both counts are legitimate if the reader knows which is in use. The government’s PKR 3.01 trillion answers the question “what is the Ministry of Defence’s operating and procurement allocation?”; the combined PKR 3.83 trillion answers “what does the state spend on serving and retired military personnel and their equipment?”. SIPRI leans towards the second definition, one reason its figures run higher than the headline (see below). Strategic Plans Division and nuclear costs fall outside both; no official figure is published.
| Budget line (FY2026-27) | Amount | In the headline figure? | Source |
|---|---|---|---|
| Defence Affairs & Services (official headline) | PKR 3.01 tn | Included | MoF Budget in Brief 2026-27 |
| of which: defence services (Army, PAF, Navy, inter-services) | PKR 3.00 tn | Included | MoF Budget in Brief 2026-27 |
| of which: defence administration | PKR 10.9 bn | Included | MoF Budget in Brief 2026-27 |
| Military pensions | PKR 822 bn (+10.8%) | Separate head, NOT in 3.01 tn | Janes; Dawn, Jun 2026 |
| Defence + pensions combined | ~PKR 3.83 tn | Analysts’ “real total” | Computed from the two lines above |
| Strategic/nuclear programme, other security heads | No official figure published | Outside both totals | — |
Where the money goes: the FY2026-27 breakdown
Pakistan publishes no service-by-service defence budget, but the four functional heads of the PKR 3.00 trillion defence-services line were reported by Dawn and Janes in June 2026. The politically significant number is procurement: physical assets rose 39.6% to PKR 925.8 billion, by far the fastest-growing head. This line pays for the programmes described in the Pakistan military inventory: Hangor-class submarines and Babur-class corvettes for the Pakistan Navy, J-10CE and JF-17 Block III for the PAF, VT-4/Haider tanks and SH-15 howitzers for the Army, and the Fatah series of guided rockets and missiles.
| Head (FY2026-27) | Allocation | Change vs FY2025-26 | Share of defence services |
|---|---|---|---|
| Employee-related expenses (pay and allowances) | PKR 967.5 bn | +14% | ~32% |
| Physical assets (procurement, equipment) | PKR 925.8 bn | +39.6% | ~31% |
| Operating expenses (fuel, training, maintenance) | PKR 743.5 bn | not stated | ~25% |
| Civil works (construction, infrastructure) | PKR 363.2 bn | not stated | ~12% |
| Defence services total | PKR 3.00 tn | — | 100% |
Even after the procurement surge, personnel remains the largest head at roughly a third, and personnel plus operating costs absorb well over half. With about 660,000 active personnel (IISS Military Balance 2025/26), the payroll sets a floor under the budget whatever is bought in a given year. Shares in the last column are rounded Envanter Medya calculations.
Budget vs SIPRI: why USD 10.8 billion and USD 11.9 billion are both correct
SIPRI’s Trends in World Military Expenditure 2025 fact sheet, published in April 2026, estimates Pakistan’s military expenditure in calendar 2025 at USD 11.9 billion, an increase of 11% in real terms. It is higher than the budget headline for three methodological reasons. First, SIPRI measures the calendar year, so its 2025 figure blends the second half of FY2024-25 with the first half of FY2025-26. Second, SIPRI’s definition includes military pensions and, where identifiable, paramilitary spending, bringing it closer to the “real total” than to the official head. Third, SIPRI converts at average annual exchange rates and reports outturn rather than allocation. Use the MoF figure for the budget decision and SIPRI for cross-country rankings.
The IMF programme and the limits of fiscal space
The FY2026-27 increase was found inside a budget written under the IMF’s 37-month, USD 7 billion Extended Fund Facility approved in September 2024. The programme sets primary-surplus and spending targets, so the defence rise had to fit within the PKR 18.77 trillion total outlay rather than be added on top. Defence thus competes directly with debt servicing, development and provincial transfers. Single-supplier dependence on China, which supplied 81% of Pakistan’s major-arms imports in 2020-24 according to SIPRI, is partly a financing story too, since Chinese packages have come with credit terms Western suppliers did not offer.
Pakistan vs India defence budget
“Pakistan defence budget vs India” is among the most common searches on this topic, but the two figures should not be placed side by side without the same care applied to both: fiscal years differ (India’s runs April to March), pension treatment differs, and exchange-rate dates matter. For the Indian figure and a like-for-like comparison with dated sources, see the Envanter Medya India-Pakistan military strength comparison 2026 and India’s military inventory; this page does not restate India’s budget. For the regional picture, the Asia’s strongest militaries 2026 ranking gives the regional context.
Fiscal year vs calendar year: a note on reading the headlines
Pakistan’s fiscal year runs from 1 July to 30 June. “FY2026-27” means 1 July 2026 to 30 June 2027 and was announced in June 2026. A search for “Pakistan defence budget 2026” can therefore return either FY2025-26 (first half of calendar 2026) or FY2026-27 (second half); SIPRI and most rankings use calendar years. Check the year convention before comparing numbers. This page is updated each June when the new Budget in Brief is released, and again if a revised estimate is published.
For what this budget buys, the Pakistan Army tanks list, the missiles list with ranges and the Türkiye-Pakistan defence cooperation timeline cover the main procurement lines; the Pakistan Defence Hub collects the whole series.
Frequently Asked Questions
What is Pakistan’s defence budget for 2026-27 in USD?
PKR 3.01 trillion, roughly USD 10.8 billion at the ~279 PKR/USD rate of 12-15 June 2026 (MoF Budget in Brief 2026-27; Janes). The rupee figure is official; the dollar figure moves with the exchange rate.
What percentage of GDP is Pakistan’s defence budget?
About 2.08% of projected nominal GDP (PKR 143.6 trillion) for FY2026-27, per Dawn, 13 June 2026. Adding the separately booked military pensions (PKR 822 billion) lifts the combined figure to roughly 2.7% of GDP.
How much did Pakistan’s defence budget increase in 2026?
By 17.65% against the original FY2025-26 allocation of PKR 2.55 trillion, or about 16% against the revised PKR 2.59 trillion (Dawn, 13 June 2026; Janes). The previous year’s rise was 20%.
Are military pensions included in Pakistan’s defence budget?
No. Military pensions are a separate head: PKR 742 billion in FY2025-26 and PKR 822 billion in FY2026-27 (+10.8%). Added to the PKR 3.01 trillion allocation, the combined figure is about PKR 3.83 trillion.
Why does SIPRI say Pakistan spends USD 11.9 billion?
SIPRI’s April 2026 fact sheet puts Pakistan’s 2025 military expenditure at USD 11.9 billion (+11% real). SIPRI uses calendar years, includes pensions and paramilitary outlays and converts at average annual rates, so it is not directly comparable with the fiscal-year allocation.
How does Pakistan’s defence budget compare with India’s?
Pakistan’s FY2026-27 allocation is PKR 3.01 trillion (~USD 10.8 billion). India’s figure is not restated here; the Envanter Medya India-Pakistan military strength comparison presents both countries on the same basis with dated sources.
When does Pakistan’s fiscal year start?
On 1 July. FY2026-27 covers 1 July 2026 to 30 June 2027, so “Pakistan defence budget 2026” usually means this fiscal year, not calendar 2026, which straddles two budgets.
Related Envanter Medya guides
- Pakistan Military Power 2026: Army, Air Force, Navy and Defence Industry
- India-Pakistan Military Strength Comparison 2026
- India’s Military Strength: How Many Tanks, Fighter Jets and Missiles? (2026)
- Asia’s 10 Strongest Militaries (2026)
- Pakistan Air Force Aircraft Inventory 2026
- Pakistan Navy Ships and Submarines 2026
- Türkiye-Pakistan Defence Cooperation: Joint Projects and Timeline
- Pakistan Defence Hub
Sources
- Ministry of Finance, Government of Pakistan – Budget in Brief 2026-27 (PDF)
- Ministry of Finance, Government of Pakistan – Budget in Brief 2025-26 (PDF)
- Janes – Pakistan raises defence budget for 2026/27 (15 June 2026)
- Dawn – Budget 2026-27 defence allocation analysis (13 June 2026)
- Business Recorder – Federal budget 2026-27 outlay and expenditure breakdown
- SIPRI – Trends in World Military Expenditure, 2025 (April 2026)
- SIPRI – Trends in International Arms Transfers, 2024 (March 2025)
- Global Firepower – Pakistan military strength (auxiliary source, not an official inventory)
