Allocations for Defence Services are budgeted at Rs 625 billion and Rs 1.8 billion will be spent under the head of defence administration. Other expenses include Rs 272 billion employees'' related expenses, Rs 162 billion allocation for operating expenses, Rs 131 billion for physical assets, Rs 62 billion for civil works and Rs 1.6 billion will be adjusted in case of less recoveries.
Total spending military pensions has been budgeted at Rs 132 billion, slightly higher than the current fiscal year''s allocation of Rs 131 billion. However, the pension of military is part of civilian budget. As compared to Pakistan, India hiked its defence spending by only 5 per cent for the next financial year, far below the previous increases.
In current fiscal year, Rs 264 billion has been allocated to the Army, Rs 114 billion to the Air Force, Rs 52 billion to the Navy and Rs 92 billion to ISI, the joint staff headquarter, the Inter-Services Public Relations (ISPR) and defence production. The defence budget is 17 percent of the national budget and 2.3 percent of the total Gross Domestic Product (GDP) of Pakistan.