Pakistan has recently announced a significant increase in defence spending in its new budget, shortly after nearly entering into a fifth war with its long-standing rival, India.

The government revealed the budget for the fiscal year 2025-2026, which includes a 20% surge in defence spending to 2.55 trillion rupees ($9bn), compared to the current fiscal year ending this month.

While overall expenditures are decreasing by 7% to 17.57 trillion rupees ($62bn), the boost in defence spending aligns with Prime Minister Shehbaz Sharif's objectives of driving economic growth and strengthening Pakistan's military post the recent conflict with India.

The escalation in hostilities between the two nuclear-armed nations involved fighter jets, missiles, drones, and artillery exchanges for several days in May, culminating in a ceasefire agreement.

The conflict was sparked by a violent attack in Pahalgam in Indian-administered Kashmir on April 22, which India attributed to Pakistan's support. Pakistan, however, denied any involvement in the incident.

Economists had anticipated a 20% increase in defence spending, which is likely to be balanced by reductions in development expenditure, as reported by Reuters.

India's defence spending for the fiscal year 2025-2026 stands at $78.7bn, marking a nearly 10% rise from the previous year, with plans to further enhance its spending in upcoming budgets.