Beyond the Gun Salutes, Rs3tr

Mettis Global reported that Pakistan has set its federal defence allocation for FY2026-27 at Rs3.01 trillion, the largest in the country's history and 17.7% higher than last year. The figure appeared in the June 12 budget and extends a run of double-digit increases to a third year. According to the report, the sum will weigh on debt, development spending and how investors judge Pakistan's risk.

Development spending is being squeezed, with the federal PSDP allocated Rs1.126 trillion, roughly a third of the defence sum. Planning Minister Ahsan Iqbal said that after existing commitments only about Rs165 billion is left for new schemes. Debt servicing, estimated at about Rs8.05 trillion, takes 43% of the Rs18.77 trillion budget and exceeds the defence figure more than 2.5 times.

Mettis Global also covered defence exports, which are reported near $10 billion in contracts for 2025, including a $4.6 billion Libyan order. The outlet treats those totals as a ceiling instead of confirmed income, citing unnamed sources and arms-embargo concerns in Libya. For equities, the report suggests defence makers and PSX firms with state contracts could gain, though it cautions that export pipelines need the same caution as any pre-contract announcement.