PKR 3.000T
FY 2026–27 defence services Budget Estimate
Approved · Federal Budget 2026–27
Defence — Budget 2025–26 vs 2026–27
Budget-estimate comparison for defence services and separately budgeted military pensions in Pakistan.
FY 2026–27 Budget Estimates · Compared with FY 2025–26 BE
FY 2026–27 Budget EstimatesCompared with FY 2025–26 BE
- Verified from Finance Division documents
At a glance
Defence budget overview
+17.6%
versus the FY 2025–26 Budget Estimate
PKR 822B
military pensions under a separate budget head
PKR 925.833B
physical assets within defence services
Defence budget by expenditure head
| Measure | FY 2025–26 | FY 2026–27 | Impact |
|---|---|---|---|
| 1. Defence services | PKR 2,550.000B | PKR 3,000.000B | +17.65% |
| 2. Employees-related expenses | PKR 846.032B | PKR 967.548B | +14.36% |
| 3. Operating expenses | PKR 704.399B | PKR 743.462B | +5.55% |
| 4. Physical assets | PKR 663.077B | PKR 925.833B | +39.63% |
| 5. Civil works | PKR 336.492B | PKR 363.158B | +7.92% |
| 6. Military pensions — separate head | PKR 742.000B | PKR 822.000B | +10.78% |
| 7. Civil pensions — separate head | PKR 243.000B | PKR 272.500B | +12.14% |
1. Defence services
+17.65%- FY 2025–26
- PKR 2,550.000B
- FY 2026–27
- PKR 3,000.000B
2. Employees-related expenses
+14.36%- FY 2025–26
- PKR 846.032B
- FY 2026–27
- PKR 967.548B
3. Operating expenses
+5.55%- FY 2025–26
- PKR 704.399B
- FY 2026–27
- PKR 743.462B
4. Physical assets
+39.63%- FY 2025–26
- PKR 663.077B
- FY 2026–27
- PKR 925.833B
5. Civil works
+7.92%- FY 2025–26
- PKR 336.492B
- FY 2026–27
- PKR 363.158B
6. Military pensions — separate head
+10.78%- FY 2025–26
- PKR 742.000B
- FY 2026–27
- PKR 822.000B
7. Civil pensions — separate head
+12.14%- FY 2025–26
- PKR 243.000B
- FY 2026–27
- PKR 272.500B
All figures compare the original Budget Estimates for FY 2025–26 and FY 2026–27. They do not substitute the FY 2025–26 Revised Estimates.
Where the PKR 450B defence-services increase goes
Employees
+PKR 121.516B
Operating
+PKR 39.063B
Physical assets
+PKR 262.756B
Civil works
+PKR 26.666B
Physical assets account for 58.4% of the PKR 450B increase.
Explore budget impact by sector
Compare the enacted FY 2026–27 changes across taxpayers and industries.
Freelancers & IT
- 0.25% PSEB rate extended to Tax Year 2029
- Export collection: 1.25%
- Foreign-card WHT: 0.5%
Business & super tax
- 0% for most persons up to PKR 500M
- 8% above PKR 500M
- Banks, E&P and fertiliser remain at 10%
Property
- Section 7E repealed
- Sale WHT: 2.75%
- Purchase WHT: 1.25%
Vehicles
- Imported EV FED: 0% / 30% / 40% by USD value
- Imported 2000cc+ vehicles: new special duty
- ICT ≤1000cc: PKR 20,000 lifetime
Solar
- 10% sales tax continues
- No new Finance Act 2026 increase
Defence
- PKR 3.00T defence services
- PKR 822B military pensions, separate
- PKR 925.8B physical assets
Quick tools
Calculate what the budget means for you
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Frequently asked questions
What is Pakistan's defence budget for FY 2026–27?
The FY 2026–27 Budget Estimate for defence services is PKR 3,000.000 billion, up from PKR 2,550.000 billion in FY 2025–26, an increase of 17.65%.
Are military pensions included in the PKR 3 trillion total?
No. Military pensions are budgeted under a separate head at PKR 822.000 billion for FY 2026–27, up 10.78% from PKR 742.000 billion. They sit outside the defence-services total.
Where does the PKR 450 billion increase go?
Physical assets rise by PKR 262.756 billion, employees-related expenses by PKR 121.516 billion, operating expenses by PKR 39.063 billion and civil works by PKR 26.666 billion. Physical assets account for 58.4% of the increase.
How much is allocated to defence procurement?
Physical assets within defence services are budgeted at PKR 925.833 billion for FY 2026–27, up from PKR 663.077 billion, a rise of 39.63% and the largest percentage increase of any expenditure head.
Are these figures actual spending or estimates?
They are original Budget Estimates for both FY 2025–26 and FY 2026–27. They do not substitute the FY 2025–26 Revised Estimates, so they should not be read as final outturn figures.
What about civil pensions?
Civil pensions are a separate pension head budgeted at PKR 272.500 billion for FY 2026–27, up 12.14% from PKR 243.000 billion. They should not be added to defence services.
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