Pakistani top minister hints at increasing defense budget weeks after military standoff with India

Pakistan’s planning minister Ahsan Iqbal chairs the 18th Senate meeting of the Pakistan Institute of Development Economics (PIDE) in Islamabad, Pakistan, on May 24, 2025. (Facebook/ahsaniqbal.pk/File)
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Updated 25 May 2025
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Pakistani top minister hints at increasing defense budget weeks after military standoff with India

  • Budgeted defense expenditure stood at Rs2,122 billion for FY25 while actual expenditure till March 2025 was Rs1,424 billion
  • Pakistan’s historically large defense budget is attributed to a complex interplay of factors, including perceived threat from India 

KARACHI: Planning Minister Ahsan Iqbal hinted this week there could be an increase in Pakistan’s defense allocation in the budget for the fiscal year 2025-26, due to be announced next month, weeks after a military standoff with India that alarmed the world.

Pakistan and India attacked each other with missiles, drones and artillery earlier this month after tensions surged over an attack in April on tourists in Indian-administered Kashmir that New Delhi blamed on Pakistan. Islamabad has denied the charge.

“We want to try and put the least burden on the common man but right now I believe it is our national duty that in this budget we give our armed forces the resources they need to strengthen our defense capabilities so that our defense can be safe even in the future,” Iqbal said in remarks to reporters when asked about reports of an increase in the defense allocation for the new fiscal year. 

The conflict with New Delhi escalated on May 7 after India first hit Pakistan and Azad Kashmir with missiles, and Pakistan retaliated, saying it had downed six Indian fighter jets. 

Fighting between the two nations continuing for four days, with missile and drone strikes on each other’s military facilities and airfields as well as increased gunfire exchanges on the de facto LoC border. A ceasefire was reached on May 10.

“This has been established that our neighbor is a dangerous enemy, who once again attempted to attack us in the dark of night, but we punished them by fully responding to this offense and it [India] will definitely think a hundred times before committing such an aggression next time,” Iqbal added.

“However, our duty is to stay alert and prepared all the time so that if someone commits such a mistake in future, then it could be responded to more effectively.”

Two days after the ceasefire, Indian Prime Minister Narendra Modi warned Pakistan New Delhi would target “terrorist hideouts” across the border again if there were new attacks on India and would not be deterred by what he called Islamabad’s “nuclear blackmail.”

“In the coming days, we will measure every step of Pakistan... what kind of attitude Pakistan will adopt,” Modi said, adding that India had only “paused” strikes.

In a report published on Saturday, Tola Associates, a major tax advisory and consultancy firm, proposed raising the defense budget to Rs2.8 trillion, a 32 percent increase compared to the last fiscal year, owing to a “war-like situation” with India.

“The budgeted defense expenditure stood at Rs2,122 billion for FY25 while the actual expenditure till March 2025 was Rs1,424 billion. [However], due to the ongoing war situation with the neighboring country, defense spending may increase by up to 50 percent in the Q4FY25,” the report said. 

“Given the current regional tensions and the need to ensure Pakistan’s defense preparedness, we estimate total defense spending to reach Rs2.4 trillion by June 2025.”

Pakistan’s historically large defense budget is attributed to a complex interplay of factors, primarily driven by regional security concerns and internal challenges. These include the perceived security threat from India as well as internal instability and security threats like terrorism. Additionally, debt servicing and the allocation of resources toward military interests have also played a role in shaping the budget.


Tirah Valley residents flee homes ahead of Pakistan’s planned anti-militant army offensive

Updated 15 sec ago
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Tirah Valley residents flee homes ahead of Pakistan’s planned anti-militant army offensive

  • Families flee militant-hit region on days-long journeys amid bitter winter cold
  • Cash aid announced but displaced residents cite lack of evacuation planning

PAINDA CHEENA, Pakistan: In the rugged mountains of Pakistan’s Tirah Valley, long lines of tractor-trolleys and mini-pickups inched toward a registration camp earlier this month. 

The vehicles were stacked with bedding, food supplies and families escaping their homes as a military operation against militants looms in the conflict-striken northwestern region. 

At the Painda Cheena registration point, 60-year-old Hajji Muhammad Yousuf sat wrapped in a shawl, waiting with dozens of others after traveling nearly 40 kilometers from his village in Maidan Tirah, a journey that took four days instead of the usual few hours. He still faces another 66-kilometer trip to Bara, near the northwestern city of Peshawar, the provincial capital of Khyber Pakhtunkhwa. 

Like thousands of others, Yousuf is leaving behind a fully furnished home ahead of an expected security offensive in the volatile border region near Afghanistan.

“Today is our fourth night here,” Yousuf said. “We have left fully furnished houses behind ... There are no facilities, no amenities for us. We are facing great hardships.”

Families load their belongings onto vehicles in Pakistan’s Tirah Valley on January 15, 2026. (AN photo)

Officials say the evacuation could affect up to 20,000 families, marking a significant escalation in Pakistan’s campaign against the proscribed militant group Tehreek-e-Taliban Pakistan (TTP). Despite major military operations in the mid-2010s, Tirah Valley has remained a stronghold for insurgents, prompting authorities to plan what they describe as a targeted clearance.

The scale of displacement has placed acute pressure on limited local infrastructure. While the journey from Maidan Tirah to the registration point at Mandi Kas normally takes around two hours by vehicle, congestion and verification procedures have stretched the trip into days for many families.

“Last night, a woman died of hunger in Sandana,” Yousuf said. “There is no arrangement for medicine, no doctor, no food, no washroom. Women and children are facing problems.”

Displaced residents say they feel trapped between militant threats and state action.

“We ourselves are opposing terrorism, yet we do not understand why, if a Taliban comes in the evening and we give bread, the government comes in the morning asking why the bread was given,” Yousuf said. “In the end, we were forced to do this [to leave].”

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The Khyber Pakhtunkhwa (KP) provincial government has announced a compensation package for displaced families. Talha Rafi, assistant commissioner for Bara, said authorities had set up 15 biometric counters at the registration site.

“One person receives a one-time compensation of Rs255,000 ($911), and a monthly Rs50,000 ($179) is provided,” he said, adding that SIM cards were being issued to ensure digital disbursement of funds.

Families load their belongings onto vehicles in Pakistan’s Tirah Valley on January 15, 2026. (AN photo)

Provincial officials say the payments are intended to cover basic needs during displacement, though residents and tribal elders argue that cash alone cannot offset the absence of shelter, health care and transport arrangements during evacuation.

The evacuation has also exposed tensions between the provincial government and Pakistan’s military establishment over the use of force in the region.

“We have neither allowed the operation nor will we ever allow the operation,” KP Law Minister Aftab Alam Afridi said, arguing that past military campaigns had failed to deliver lasting stability.

“These people are our own people. They are also the people of this state, the people of this province. We will definitely take care of them,” he said, adding that the KP cabinet had approved what he described as “a large package” for the displaced families.

Federal authorities and the military have signaled a firmer stance. While Federal Information Minister Ataullah Tarar and the military’s public relations wing did not respond to requests for comment, military spokesperson Lt. Gen. Ahmed Shareef Chaudhry has previously defended security operations as necessary.

Families sittinng in vehicles with their belongings in Pakistan’s Tirah Valley on January 15, 2026. (AN photo)

In a recent briefing, Chaudhry said security forces carried out 75,175 intelligence-based operations nationwide last year, including more than 14,000 in Khyber Pakhtunkhwa, attributing the surge in violence to what he described as a “politically conducive environment” for militants.

Analysts say political divisions have allowed the TTP to regain ground. 

Peshawar-based journalist Mehmood Jan Babar said many militants now operating in Tirah are local residents who returned after refusing settlement offers in remote parts of Afghanistan.

“Whenever we have seen division at the national level, the Taliban have taken advantage of it,” he said.

But for families waiting in freezing conditions at Painda Cheena, such strategic calculations offer little comfort. Tribal elders accuse civil authorities of ordering displacement without adequate logistical planning.

“The government has, without any administrative arrangements, ordered these people to migrate,” said Muhammad Khan Afridi, an elderly local resident. “You yourselves are seeing what suffering these people are facing, what humiliation they are experiencing.”

As a January 25 evacuation deadline approaches, uncertainty dominates daily life for those uprooted.

“Bringing peace is in the government’s hands,” Yousuf said. “It is up to them whether they normalize the situation or drive us out again tomorrow.”