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Pakistan boosts defence budget amid economic cutbacks, eyes 4.2% growth

Pakistan has hiked its defence budget by 20% in the 2025-26 fiscal plan, while reducing overall government spending, sparking concerns over economic priorities.

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Shahbaz sherif

Pakistan’s newly unveiled federal budget for 2025-26 highlights a sharp increase in defence spending, with a 20% hike that pushes military allocations to PKR 2.55 trillion ($9 billion), excluding pensions. At the same time, the government has trimmed overall spending by 7%, raising concerns over Islamabad’s development priorities.

Defence allocation sees major rise

In the budget presented by Prime Minister Shehbaz Sharif’s administration, the total defence allocation – including PKR 742 billion ($2.63 billion) for military pensions – rises to PKR 3.292 trillion ($11.67 billion). The outlay also earmarks PKR 704 billion ($2.5 billion) for physical assets and military equipment. This increase follows a recent military clash with India, triggered by the April terror attack in Jammu and Kashmir’s Pahalgam that left 26 dead. India has accused Pakistan of backing the attackers.

Sharif stated Pakistan must aim to surpass India in the economic arena, underlining defence as a critical pillar of national strategy.

Spending cuts and IMF conditions

Despite the military boost, Pakistan has cut total government expenditure by 7% as it attempts to stabilise an economy burdened by nearly PKR 76,000 billion (approximately $270 billion) in debt accumulated in the first nine months of the current fiscal year.

The finance ministry, led by Muhammad Aurangzeb, presented a PKR 17.573 trillion ($62 billion) budget, with a growth target of 4.2% for the coming fiscal year. Inflation is expected to ease to 7.5%, while the fiscal deficit is forecast to reduce to 3.9% of GDP from the previous 5.9%.

Pakistan is following terms laid out by the International Monetary Fund (IMF), which recently disbursed $2.4 billion in aid. Islamabad has assured the IMF that the budget is being prepared in consultation with the Fund, and has reiterated its commitment to privatising Pakistan International Airlines.

Growth struggles amid regional competition

While Aurangzeb expressed optimism, actual economic growth for the current fiscal year is likely to fall short at 2.7%, compared to the 3.6% target. This figure lags significantly behind the regional average, with South Asia recording 5.8% growth in 2024 and projections of 6.0% for 2025, according to the Asian Development Bank.

Aurangzeb highlighted the need for structural economic reform, stating, “Our budget strategy is to change the economy’s DNA by bringing basic changes.” He emphasised boosting exports and foreign reserves to avert past balance-of-payments crises.

Experts remain cautious

Despite interest rate cuts aimed at reducing borrowing costs, economists caution that fiscal constraints and IMF-mandated reforms may limit investment. Many believe that without parallel structural reform and developmental focus, Pakistan’s aspirations of economic stability and competitiveness will remain constrained.

Entertainment

Kumkum Bhagya actor Sanchita Ugale dies by suicide near Mumbai at 22

Television actor Sanchita Ugale, known for Kumkum Bhagya and Wagle Ki Duniya, died by suicide at her residence near Mumbai. Police have launched an investigation.

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Sanchita Ugale

Television actor Sanchita Ugale, known for her appearances in Kumkum Bhagya, Wagle Ki Duniya and Dilwali Dulha Le Jayegi, died by suicide at her residence in Nalasopara East near Mumbai on June 14. She was 22.

According to police officials, the incident took place at her home in Achole village, Nalasopara East. Authorities said Ugale had locked herself inside her bedroom and was later found hanging from a ceiling fan. Family members and local residents rushed her to a hospital, where doctors declared her dead.

Police have registered an Accidental Death Report (ADR) and launched an investigation into the circumstances surrounding her death. Officials said inquiries are underway and the exact reason behind the incident has not yet been established.

Career across television, OTT and films

Ugale had built a growing presence in the entertainment industry through television, streaming projects and films. Apart from Kumkum Bhagya and Wagle Ki Duniya, she played a lead role in Dilwali Dulha Le Jayegi. She also appeared in OTT projects such as Crime Aaj Kal and Silence 2.

The actor was also associated with the film Chhaava, which contributed to her growing recognition among audiences.

Last social media post draws attention

Following news of her death, social media users shared and commented on Ugale’s final Instagram post, which had been uploaded hours before the incident. The post showed the actor in traditional attire lip-syncing to a classic Bollywood song. Fans expressed shock and grief after learning of her death.

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India News

Congress, SP send mixed signals on AIMIM’s role ahead of 2027 Uttar Pradesh polls

Congress and Samajwadi Party leaders have responded differently to questions about AIMIM’s role ahead of the 2027 Uttar Pradesh Assembly elections, highlighting ongoing discussions over opposition strategy.

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Differing responses from Congress and Samajwadi Party leaders have highlighted varying approaches within the Opposition camp regarding the possible role of the All India Majlis-e-Ittehadul Muslimeen (AIMIM) in the run-up to the 2027 Uttar Pradesh Assembly elections.

The discussion gained momentum after AIMIM chief Asaduddin Owaisi launched his party’s campaign preparations for the 2027 elections from Bahraich and reiterated that his party is open to alliances, provided it is treated with respect and as an equal partner.

Different responses from Congress and SP

Reacting to questions about a possible understanding with AIMIM, Congress leader Imran Masood said any decision on alliances would be taken by the party leadership. He also stressed that there could be no compromise with communalism.

On the other hand, Samajwadi Party leader Ram Gopal Yadav adopted a more accommodating tone, stating that anyone capable of defeating the BJP would be welcome. His remarks were viewed as leaving the door open to broader anti-BJP political cooperation.

The differing responses have drawn attention as Opposition parties continue to assess their electoral strategies ahead of the 2027 Uttar Pradesh Assembly elections.

AIMIM steps up preparations

AIMIM has begun expanding its campaign activity in Uttar Pradesh, with Owaisi launching the party’s preparations from Bahraich. The Hyderabad MP has indicated that AIMIM is willing to consider alliances but has maintained that any partnership must be based on mutual respect and equality.

The party is also working to strengthen its organisational presence in the state as it seeks a larger role in Uttar Pradesh politics ahead of the next Assembly election.

No formal alliance announced

Despite the ongoing discussion, no formal alliance or seat-sharing arrangement involving AIMIM and major Opposition parties has been announced so far.

With more than a year remaining before the 2027 Uttar Pradesh Assembly elections, political equations are expected to evolve as parties finalise their strategies and alliance plans.

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India News

Delhi dust storm brings 92 kmph winds as IMD issues red alert

Delhi witnessed a powerful dust storm with wind speeds reaching 92 kmph, prompting the IMD to issue a red alert. The storm brought rain, thunderstorms and relief from the intense heat.

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Delhi weather update

A powerful dust storm swept across Delhi on Monday, bringing strong winds, reduced visibility and a sudden change in weather conditions across the national capital. Wind speeds reportedly reached 92 kmph in some areas as dark clouds and blowing dust engulfed parts of the city. The India Meteorological Department (IMD) issued a red alert, warning residents about severe weather conditions and urging them to take necessary precautions.

The storm was accompanied by thunderstorms and rain in several parts of Delhi-NCR. The sudden weather activity provided relief from the prevailing heat but also raised concerns over potential disruptions to transport and power infrastructure. According to the weather department, strong surface winds and thunderstorms were expected to continue for several hours.

Red alert issued for severe weather

A red alert is issued when weather conditions pose a significant threat to life and property and require immediate action. The IMD advised people to remain indoors where possible, avoid weak structures, stay away from trees and electric poles, and refrain from taking shelter in open areas during the storm.

Weather officials said the intense conditions were linked to atmospheric instability over northwest India, influenced by weather systems affecting the region. Similar episodes of thunderstorms, heavy rain and strong winds have impacted Delhi-NCR in recent days.

The latest spell of severe weather is expected to bring down temperatures and offer relief from the heat. The IMD has also forecast further wet weather activity across parts of northwest India in the coming days.

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