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.


Pakistan send Bangladesh in to bat in third T20I

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Pakistan send Bangladesh in to bat in third T20I

  • Pakistan lead the series 2-0 after first two matches at the same venue
  • Bangladesh have brought in pace bowler Khaled Ahmed for his T20I debut

LAHORE: Pakistan captain Salman Agha won the toss and sent Bangladesh in to bat in the third and final Twenty20 international in Lahore on Sunday.

Pakistan, who lead the series 2-0 after the first two matches at the same venue, called in fast bowler Abbas Afridi in place of Haris Rauf.

Bangladesh were forced to bring in pace bowler Khaled Ahmed for his T20I debut in place of the injured Shoriful Islam.

TEAMS

Pakistan: Salman Agha (capt), Mohammad Haris (wkt), Saim Ayub, Sahibzada Farhan, Hasan Nawaz, Shadab Khan, Khushdil Shah, Faheem Ashraf, Abbas Afridi, Hasan Ali, Abrar Ahmed

Bangladesh: Litton Das (capt/wkt), Tanzid Hasan, Parvez Hossain, Towhid Hridoy, Jaker Ali, Shamim Hossain, Mehidy Hasan Miraz, Rishad Hossain, Tanzim Hasan, Hasan Mahmud, Khaled Ahmed


Pakistan reaffirms commitment to macroeconomic stability as Ipsos survey shows rising consumer trust

Updated 01 June 2025
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Pakistan reaffirms commitment to macroeconomic stability as Ipsos survey shows rising consumer trust

  • The latest Ipsos survey revealed that 42% Pakistanis now believe the country is heading in the right direction
  • The development comes amid stabilization of key indicators, including inflation, exchange rate and forex reserves

KARACHI: Pakistan on Sunday reaffirmed its commitment to macroeconomic stability after Ipsos, a Paris-based global market research and consultation firm, said consumer confidence grew in the South Asian country in the second quarter of this year.

The Ipsos survey revealed a significant surge in consumer confidence, with 42% of Pakistanis now believing the country is heading in the right direction — the highest level recorded in six years.

Perceptions of the economy being strong reached their most favorable levels since August 2019, and optimism overtook pessimism that marked a key psychological shift among the population, according to the survey.

Pakistan’s Finance Minister Muhammad Aurangzeb said the “encouraging” data reflected the success of his government’s disciplined and targeted macroeconomic strategy implemented over the last 14 months.

“He highlighted that consumer confidence in making major purchases and investments has doubled compared to the same period last year, indicating that households are beginning to feel more secure in their financial prospects. Similarly, confidence in job security is now at its highest since 2019, a sign that

labor market conditions are gradually stabilizing in response to pro-growth policies and reforms,” the finance ministry said.

“Senator Aurangzeb reaffirmed that the government remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.”

The development comes amid stabilization of key economic indicators, including inflation, exchange rate, foreign exchange reserves and fiscal discipline, that has led a renewed public trust in Pakistan, which is currently on path to economic recovery under a $7 billion International Monetary Fund (IMF) program secured in Sept. last year.

Aurangzeb pointed out that this upswing in consumer confidence spans across urban and rural areas, and is particularly evident among youth and women, demonstrating the broad-based nature of the economic turnaround.

He linked this optimism to sustained government efforts to create an enabling environment to enhance private sector growth, exports, social protection and financial inclusion.

“The findings of the IPSOS survey are a timely validation of Pakistan’s economic direction and a clear signal that the country is on a steady path toward recovery and resilience,” the minister said.


India arrests 81 for ‘sympathizing’ with Pakistan

Updated 01 June 2025
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India arrests 81 for ‘sympathizing’ with Pakistan

  • There has been a clampdown on social media since an April 22 attack on tourists in Indian-administered Kashmir
  • New Delhi blamed Pakistan for backing the militants it said carried out the attack, Islamabad denies the allegation

GUWAHATI: Indian police have arrested scores of people for “sympathizing” with Pakistan, a month after the worst conflict between the arch-rivals for decades, a top government official said Sunday.

The arrests took place in the northeastern state of Assam, where Chief Minister Himanta Biswa Sarma said “81 anti-nationals are now behind bars for sympathizing with Pak.”

Sarma, from Prime Minister Narendra Modi’s Hindu nationalist ruling party, said in a statement “our systems are constantly tracking anti-national posts on social media and taking actions.”

One of the persons was arrested after he posted a Pakistani flag on his Instagram, Assam police told AFP.

No further details about other arrests were given.

There has been a wider clampdown on social media since an April 22 attack on tourists in Indian-administered Kashmir, the deadliest on civilians in the contested Muslim-majority territory in decades.

New Delhi blamed Islamabad for backing the militants it said carried out the attack, charges that Pakistan denied.

India and Pakistan then fought a four-day conflict, their worst standoff since 1999, before a ceasefire was agreed on May 10.

India’s counter-terrorism agency last month arrested a paramilitary police officer for allegedly spying for Pakistan, while authorities have arrested at least 10 other people on espionage charges in May, according to local media.

Sarma is also pushing efforts to stem the contentious issue of illegal immigration.

Assam shares a long and porous border with neighboring Muslim-majority Bangladesh.

Indian media have reported that Assam’s government has allegedly rounded up dozens of alleged Bangladeshis in the past month and taken them to the frontier to cross.

The Times of India newspaper on Saturday reported that Assam was “dumping them in no-man’s land,” suggesting that at least 49 had been pushed back between May 27-29 alone.

The Assam government has not commented on the reports.

Bangladesh, largely encircled by land by India, has seen relations with New Delhi turn icy, after the Dhaka government was toppled in an uprising last year.

Bangladesh has also moved closer to China, as well as to Pakistan.


PM urges trickle-down effect of development schemes in insurgency-hit Balochistan

Updated 01 June 2025
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PM urges trickle-down effect of development schemes in insurgency-hit Balochistan

  • Balochistan, Pakistan’s largest but most impoverished province, has been the site of a long-running insurgency that has intensified in recent months
  • PM Shehbaz Sharif says Balochistan will receive 25 percent share of Public Sector Development Program, which funds long-term projects, in the upcoming budget

ISLAMABAD: Prime Minister Shehbaz Sharif has stressed the need to ensure a trickle-down effect of his government’s developmental initiatives in the southwestern Balochistan province, Sharif’s office said on Sunday, amid a surge in militant attacks in the region.

Balochistan, Pakistan’s largest but most impoverished province, has been the site of a long-running insurgency that has intensified in recent months, with separatist militants attacking security forces, government officials and installations and people from other provinces who they see as “outsiders.”

The Pakistani government says it has launched several development schemes relating to infrastructure, health and education for some 15 million people of Balochistan, which is also home to deep seaport being built by China, gold, copper and coal mines, and has a long coast on the Arabian Sea.

Speaking to tribal elders during his visit to the provincial capital of Quetta, PM Sharif highlighted the series of developmental programs undertaken by his government for the prosperity of Balochistan and called on officials to ensure that their benefits reach the people of the southwestern Pakistani province.

“He praised the people of Balochistan for their historic role in safeguarding national unity and urged them to remain vigilant against foreign-backed subversion and sabotage orchestrated and sponsored by India,” Sharif’s office said.

“The jirga [council of tribal elders] concluded with a unanimous pledge from tribal elders to stand shoulder to shoulder with the Government of Pakistan and armed forces, reaffirming their commitment to the security, stability and development of Balochistan.”

Pakistan and India often accuse each other of supporting militancy. Islamabad blames India of backing the separatist insurgency in Balochistan as well as religiously motivated militant groups, like the Pakistani Taliban, in Khyber Pakhtunkhwa. India denies the allegations.

Sharif announced that Balochistan will receive 25 percent share from the Public Sector Development Program (PSDP), which funds infrastructure, energy, education and other long-term projects, in the upcoming budget.

“I think that PSDP will be of Rs1,000 billion [in the next budget],” he told the gathering. “So, out of this [amount], a fund of approximately Rs250 billion is for Balochistan alone. That is, 25 percent of the total federal PSDP for Balochistan.”

Addressing the challenge of militancy in the province, Sharif called for engagement at the grassroots level to ensure that militants find no social space.

“This was crucial for the success of counter terrorism efforts and for the long-term peace and stability,” he said.

On the occasion, Field Marshal Asim Munir, who accompanied the prime minister to Balochistan, emphasized that Pakistan’s army was fully alert and prepared to respond decisively to any threat.

“Peace in Balochistan is non-negotiable and that the future of Pakistan is directly linked to a stable, prosperous Balochistan,” he was quoted as saying by Sharif’s office.

Sharif also visited the military’s Command and Staff College in Quetta and addressed student officers and faculty, reflecting his government’s commitment to strengthening Pakistan’s defense institutions amidst evolving regional and internal security dynamics.

“The prime minister highlighted the critical importance of professional excellence, operational readiness, and strategic foresight in the face of emerging and hybrid threats, especially in sensitive regions like Balochistan,” Sharif’s office said.


Pakistan raises alarm over risks to Asia-Pacific stability amid India tensions

Updated 01 June 2025
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Pakistan raises alarm over risks to Asia-Pacific stability amid India tensions

  • Pakistan, India last month engaged in a worst standoff between them in decades that killed 70 people on both sides
  • The conflict raised fears that it could spiral into a full-blown war and bring nuclear arsenals of the archrivals into play

ISLAMABAD: A top Pakistani general on Sunday raised alarmed over risks to Asia-Pacific stability in the absence of regional crisis management frameworks, amid prevailing tensions between Pakistan and India.

Pakistan and India last month engaged in a worst standoff between them in decades that saw the neighbors attack each other with jets, missiles, drones and artillery, killing around 70 people on both sides before the United States brokered a ceasefire on May 10.

The conflict, triggered by an attack on tourists in Indian-administered Kashmir’s Pahalgam town that New Delhi blamed on Pakistan, alarmed the world powers and raised fears that it could spiral into a full-blown war and bring the archfoes’ nuclear arsenals into play.

Speaking at the Shangri-La Dialogue security meeting in Singapore, General Sahir Shamshad Mirza, Pakistan’s Joint Chiefs of Staff Committee chairman, said the recent India-Pakistan conflict underscored how crisis management frameworks remained “hostage to countries’ belligerence.”

“The recent standoff amply underlines significance of maintaining open channels of communications to avert crises as and when they erupt. Post-Pahalgam [attack], the threshold of an escalatory war has come dangerously low, implying greater risk on both sides, just not in the disputed territory, but all of India and all of Pakistan,” he said.

“In future, given the Indian policies and polities’ extremist mindset, absence of a crisis management mechanism may not give enough time to the global powers to intervene and effect cessation of hostilities.”

Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947.

Before the conflict, both nations unleashed a raft of punitive measures against each other, with India suspending the 1960 Indus Waters Treaty that ensures water for 80 percent of Pakistani farms and Pakistan closing its airspace to Indian airlines. India has said the treaty would remain in abeyance.

Gen Mirza said New Delhi’s move to suspend the treaty is in “total defiance of the international laws, since it is an existential threat for the people of Pakistan.”

“If there is any effort to stop, divert or delay Pakistan’s share of water, as clearly spelt out by our National Security Committee, it could be considered as an act of war,” he added.

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