The federal government has allocated Rs. 822 billion for military pensions and Rs. 272 billion for civil pensions in the Budget 2026-27, reflecting a combined pension expenditure of more than Rs. 1 trillion.
The allocation is intended to cover pension obligations for retired armed forces personnel and civilian government employees. Pension expenditures continue to represent a significant component of the government’s recurring expenditures, highlighting the growing fiscal burden associated with retirement benefits.
The latest budget figures underscore the importance of pension reforms and long-term fiscal planning as policymakers seek to balance social obligations with broader economic priorities.
