Pakistan, June 14 -- The federal government will partly use provincial grants to support defence spending next fiscal year, Finance Minister Muhammad Aurangzeb said. The move aims to address rising security needs and potential economic fallout from regional tensions. Meanwhile, the government approved over Rs20 billion in relief measures for civil servants.

Addressing a post-budget press conference in Islamabad, Aurangzeb said provinces had provided more than Rs1 trillion to help meet urgent financial requirements. He stated that part of the contribution had been reflected in the defence budget after an 18 percent increase in defence spending. He added that discussions were underway to develop a three-year contribution framework with the...