In the federal budget for fiscal year 2025–26, the government has significantly increased allocations across key expenditure heads, including defence, civil administration, pensions, subsidies, and grants.
The defence budget has been raised by 20.2%, with Rs2,550 billion earmarked to cover the operational and logistical needs of the Pakistan Army, Navy, Air Force, and affiliated defence bodies.
Civil administration has been allocated Rs971 billion, covering the functioning of federal ministries, departments, and the civilian bureaucracy.
Pension payments for retired government employees are set at Rs1,055 billion, reflecting a steadily rising cost that continues to strain the national exchequer.
Subsidies have been assigned Rs1,186 billion, primarily directed at the power sector. These funds are intended to support low-income households, agricultural tube wells, and industrial consumers.
Meanwhile, Rs1,928 billion in grants will be disbursed to support key regions and programs. These include the Benazir Income Support Programme (BISP), as well as developmental and welfare funding for Azad Jammu and Kashmir, Gilgit-Baltistan, and the merged districts of Khyber Pakhtunkhwa.
The government states that these allocations aim to balance national security, administrative operations, and regional development while addressing rising financial obligations.
