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IMF Projects Pakistan’s 2025 Defence Budget at Rs 2.152 Trillion

Islamabad: The International Monetary Fund (IMF) has projected Pakistan’s defence budget for the upcoming fiscal year (2025) at Rs 2,152 billion, reflecting a significant 19.29 percent increase from the Rs 1,804 billion budgeted for the current fiscal year.

The projected defence allocation represents 1.72 percent of Pakistan’s Gross Domestic Product (GDP), with the nominal GDP for the next fiscal year estimated at Rs 124,813 billion, compared to Rs 106,577 billion for the ongoing fiscal year. This projection was detailed in the IMF’s second and final review documents of the Stand-By Arrangement.

In addition to the defence budget, the IMF documents provide broader fiscal projections:

  • Current Expenditure: Combined federal and provincial current expenditure is projected at Rs 22,037 billion for 2025, a 15.09 percent increase from Rs 19,146 billion budgeted for the current fiscal year.
  • Federal Current Expenditure: This is projected to rise to Rs 16,712 billion, up 14.8 percent from Rs 14,555 billion in the outgoing fiscal year, accounting for 13.3 percent of the GDP.
  • Interest Payments: These are expected to increase by 13.7 percent to Rs 9,787 billion, compared to Rs 8,602 billion for the current fiscal year.
  • Development Expenditure and Net Lending: Projected at Rs 2,673 billion for 2025, showing a 22.67 percent increase from Rs 2,179 billion in the current fiscal year.
  • Public Sector Development Program: Anticipated to reach Rs 2,590 billion for  year 2025, which includes Rs 890 billion for federal and Rs 1,700 billion for provincial allocations. This represents a 22.86 percent increase from the Rs 2,108 billion allocated for the current fiscal year (with Rs 782 billion federal and Rs 1,282 billion provincial).

These projections highlight a substantial increase in Pakistan’s defence and overall expenditure.

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