The federal government has allocated Rs 3,000 billion for defence in Pakistan’s 2026-27 budget — making it one of the single largest spending areas in the new financial plan. The allocation is aimed at strengthening national security and meeting the operational requirements of the country’s armed forces amid ongoing regional and internal security challenges.
Education
Alongside the defence budget, the government has set aside Rs 46 billion for higher education, science and technology. The funding is expected to support universities, research projects, innovation and programmes designed to improve access to quality education and scientific development across the country. A separate Rs 22 billion has been allocated for basic education and skills development to help improve literacy rates and better prepare young Pakistanis for the job market.
Health
The health sector has been allocated Rs 25 billion under the new budget. According to official plans, the funding will be used to expand tertiary healthcare facilities, strengthen emergency and critical care services and improve cancer treatment programmes across the country. The investment is intended to enhance the overall quality of medical services and provide better care for patients in both urban and rural areas.
Governance
An additional Rs 13 billion has been reserved for governance and institutional reforms aimed at improving public sector performance and boosting administrative efficiency across government departments.
The budget allocations reflect the government’s effort to balance the country’s pressing security needs with much-needed investments in education, healthcare and institutional development — though critics are likely to question whether the share given to education and health is sufficient to address the deep-rooted challenges these sectors continue to face.


