Pakistan has announced a more than 20% increase in its defence budget, following a recent military escalation with India.

In the federal budget unveiled on June 10, Finance Minister Muhammad Aurangzeb allocated 2.55 trillion rupees (USD 9 billion) to the armed forces.

This comes after a deadly exchange of missile and drone strikes between India and Pakistan in early May.

Pakistan remains under strict oversight from the International Monetary Fund (IMF), which has urged fiscal discipline as part of a USD 7 billion loan program, initiated in September of last year.

Before the conflict, India had also raised its defence budget to USD 78.7 billion – a 9.5% increase, but unlike Pakistan, it faces less financial scrutiny from international lenders.