Pakistan can further increase the proposed defense budget for the next financial year to handle Indian aggression and spend more on original research and development, in one step that may also require the provincial governments to share the extra costs.

Official sources told The Express Pakinomist that due to rapid security-related developments, the authorities concerned have begun to consider whether the previously agreed 18% increase in the defense budget for the financial year 2025-26 will suffice.

The question has been discussed on a par with the Ministry of Finance, the Ministry of Defense and also with the International Monetary Fund, the sources said.

While answering a question whether Pakistan requested the IMF to give an additional increase in the defense budget and compensate it down, you need to adjust the agreed primary budget surplus target, Finance Minister Muhammad Aurangzeb replied that “we remain obliged to remain the course both in terms of structural reform agenda and meet all quantitative and structural benchmarks”.

Pre-10 years, the federal government had decided to increase an increase of 18% in the defense budget during last year’s award of RS2.1 trillion. This is also agreed between Pakistan Peoples Party and Pakistan Muslim League-Nawaz during a meeting with President of Prime Minister Shehbaz Sharif.

However, the IMF had indicated RS2.42 trillion for defense expenses for the next financial year, which was higher by only 12%.

The sources said the IMF had no problem with the increase in defense budget, provided the government has a fiscal space to finance it without compromising the primary budget surplus target of around RS2.2 trillion or 1.7% of GDP.

The discussions take place at a time when the IMF’s top man for the region, Jihaz Azour, was in Islamabad. Jihad held important meetings on Wednesday, including with Finance Minister Muhammad Aurangzeb and some with other high -profile state digits, the sources said.

Jihad is also scheduled to meet with the Prime Minister today (Thursday).

The sources said to accommodate the increased security situation needed to increase the defense budget by at least a quarter. This would require about RS500 billion jumps over this fiscal year, which was necessary to refill the arsenals. The sources said the extra money was also needed for the armed forces development program and clearing some previous defense -related obligations.

For this financial year, RS270 billion had been awarded to the development program with armed forces, which may need to be significantly increased in the light of regional development, the sources said.

The extra financial need for cementing the country’s defense to be should be to be to the provinces. At a meeting with the Prime Minister a few days ago, Petroleum Minister Ali Pervaiz Malik had suggested that the provincial governments should carry at least half of the extra defense costs. The provinces are rich and have huge cash surpluses, while the federal government is running deficits.

India attacked Punjab and Sindh provinces, and there is a need for the provinces to now emerge to bear the costs, the government officials noted.

The Ministry of Finance also considered redirecting some of the unproductive subsidies to meet the country’s additional defense budget needs.

During one of the recent meetings, the IMF’s mission manager pointed to awarding over RS1 trillion to the power sector -subsidies despite the fact that electricity prices have fallen. But the power department asked for more money, the sources said.

The Ministry of Finance can also divert some of the unproductive subsidies given to different banking sector schemes to meet the defense needs.

The coalition partners fought for more development budget while lodging the proposed RS921 billion worth the public sector development program insufficient for the next financial year. Prime Minister Shehbaz Sharif has already put together a committee to review the opportunity to further increase the development budget.

The government was considering increasing the development budget to over RS1 trillion, but the Ministry of Finance wanted to limit it and instead put money for defense purposes.

FBR remains the weakest link and a reason for the lower than the required allocations to the defense and development. FBR has missed its tax targets with wide margins, and almost all initiatives are back. Some of the IMF-FBR meetings this week did not go well because of the FBR’s inability to fulfill its obligations.

Prime Minister Shehbaz Sharif on Wednesday made up a committee to tackle the issue of firmly linked refund of the refineries due to poor taxation policies and to inflate collection. It was decided that Petroleum Division will consult with the Financial Division and the Revenue Department to conclude the proposal regarding the adjustment mechanism for revenue tax on refinery products, according to the decision.

There is also a need to end the unjustified 1% advance on the income tax on exports in the budget after the normal tax regime has taken effect from this financial year.

Pakistan on Wednesday accused India of a deadly attack on a school bus.

The Prime Minister’s office said Wednesday that a school bus bearing innocent children was targeted today in Khuzdar, Balochistan of state -sponsored proxies in the region of the region.

Successor to gross lack of tailor -made Pakistan Through obvious military means, creepy terrorist incidents are orchestrated through their proxies on an intensified scale of Balochistan and Khyber Pakhtunkhwa, who are deliberately targeted at civilians in a meaningless attempt to destabilize Pakistan, according to the Prime Minister’s office.

The creepy incident led to martyrdom by three innocent children and two soldiers along with 53 wounded including 39 innocent children, 8 of whom are critical, according to the government.

Given the increased tensions, the authorities said the next year’s defense budget should be unusual to increase the disposable time to strengthen the capacities of the army, fleet and air force.