Pakistan is preparing to announce its national budget for the fiscal year 2025–26. One of the key recommendations from Tola Associates, a well-known tax and financial advisory firm, is to increase the country’s defence budget to Rs2.8 trillion. This would be a 32% rise compared to the previous year. The proposed increase is mainly due to growing regional tensions and the need for fresh recruitment in the military.
By the end of June 2025, defence spending is expected to reach around Rs2.4 trillion. While this area of spending is growing, the overall projected budget for the next fiscal year is estimated to be Rs17.2 trillion, which is slightly lower than the budget for 2024–25. The drop in total spending is mostly because the government expects to pay less in interest on loans and debt.
Tola Associates believes that the upcoming budget offers a critical chance to reshape Pakistan’s economy. They are calling on the government to introduce balanced policies that will support financial stability and encourage long-term growth. They stress the importance of fiscal responsibility, smart spending, and economic reforms that benefit both the people and the country’s future.
