India, May 17 -- Pakistan is expected to raise its defence budget by about PKR 100 billion in the upcoming fiscal year as the Government prepares its budget under an International Monetary Fund (IMF) - backed reform programme that projects a sharp rise in revenues, according to a media report.

The Dawn newspaper, citing the IMF staff report issued after the completion of the third review of the $ 7 billion Extended Fund Facility (EFF) and the second review of the $1.4 billion Resilience and Sustainability Facility (RSF), reported that defence expenditure for 2026-27 was estimated at Pakistani rupees (PKR) Rs 2.665 trillion, up from PKR 2.564 trillion this year.

The IMF projected Pakistan's total federal revenues for 2026-27 at PKR 17.14...