The government boosted the defence budget for the current fiscal year by nearly 6 per cent to more than Rs1.45 trillion on June 4 in order to cater the demands of the military services, along with increase in their salaries.

As per a report from The Express Tribune, the Economic Coordination Committee (ECC) of the Cabinet okayed an additional Rs80 billion in auxiliary grants, bringing the total approved to Rs182 billion. The Ministry of Defence had requested an additional Rs80 billion for “critical shortfalls” in the defence budget, in addition to budget revisions for expenses on the Jinnah Naval Base, the Naval Base Turbat, and the multi-functional office building in the headquarters.

Miftah Ismail, Federal Minister of Finance, chaired the ECC meeting, which endorsed a Rs80 billion supplementary budget for the armed forces, or the amount of total expenditures incurred. The ministry of finance projected that extra spending in fiscal year 2021-22, which ends on June 30, would be less than Rs80 billion.


The National Assembly approved an Rs1.373 trillion defence budget for the present fiscal year in 2021. Keeping in view the increase in the spending ceiling, the next fiscal year’s defence budget could be greater than the previously estimated figure of more than Rs1.55 trillion.

The Ministry of Defence received Rs153 billion in total, which is 11.8 per cent more in this fiscal year than in the previous year’s revised budget, which is identical to Pakistan’s average inflation rate. Defence spending will amount to 2.2 per cent of GDP, excluding armed forces development expenditures.

The ECC also agreed to impose a 10 per cent regulatory duty on Chinese petrol imports in order to prevent abuse of bilateral free trade agreements. Some oil marketing companies rerouted their imports through China in order to avoid paying 10 per cent customs duty.

For fiscal year (FY) 2021–22, the Pakistan government had decided a defence budget of Rs1.37 trillion (USD8.78 billion). The allocation represented a 6.2 per cent increase over the initial 2020–21 defence budget of Rs1.29 trillion.

The defence budget represented approximately 16 per cent of the government’s total expenditure for 2021–22, and it was announced against the backdrop of Pakistan’s improving economy. Despite the Covid-19 pandemic, the country’s GDP is expected to rise by nearly 4 per cent in 2020–21.

The majority of Pakistan’s defence budget goes to defence services, with a small portion going to defence administration. Employee-related expenses are the largest expenditure in the former appropriation, receiving Rs481.6 billion in 2021–22, a 1 per cent increase year on year.

The graph below compares how much money the nation spent on defence:

Here’s a comparison of the national and army budgets as it grows over time:

The graph depicts how little Pakistan has spent on defence than India. Pakistan’s defence spending is not even close to India’s:

As shown in the graph below, Pakistan is still among the countries that spend far less than others:

The graph below demonstrates the average spending of the United States, Saudi Arabia, India, Iran, and Pakistan, which is significantly less than what Iran spends on each soldier: