Pakistan has increased its defence budget by 20 percent, allocating 2.55 trillion rupees ($9bn) for the 2025-26 fiscal year, despite cutting overall government spending by 7 percent. The move follows recent clashes with India, marking the most serious conflict between the two nuclear powers in decades. The fighting, triggered by an attack in Indian-administered Kashmir, saw both sides exchange heavy fire before agreeing to a ceasefire. Analysts say Pakistan’s defence hike will likely come at the cost of development spending.