• Increase comes amid tensions with India, Afghan border concerns • Allocation crosses 2pc of GDP after 17.6pc hike • Military spending makes up nearly 16pc of federal outlay • Rs967.55bn earmarked for salaries, allowances • Military pensions budgeted separately at Rs822bn ISLAMABAD: The federal government on Friday proposed allocating Rs3 trillion for defence services in fiscal year 2026-27, marking a 17.65 per cent increase over the outgoing year’s original allocation of Rs2.55tr, as it sought to sustain military preparedness amid continuing tensions with India, a deteriorating security situation along the Afghan border and persistent militant violence at home. Finance Minister Muhammad Aurangzeb, while tabling the budget in the National Assembly, said Pakistan’s armed forces had delivered a decisive response to India’s aggression, forcing the adversary to retreat and demonstrating the country’s military preparedness and professional competence. The finance minister attributed the country’s enhanced global stature to the successes of the military.