<h1>Pakistan's Budget Signals Major Defense Boost with 18% Spending Increase Amid Economic Challenges and Regional Tensions</h1> Pakistan is preparing to unveil its annual federal budget with a likely substantial increase in defense spending. The total budget size is expected to reach Rs 17.6 trillion, targeting 4.2 percent GDP growth and 7.5 percent inflation. Defense expenditure is anticipated to rise by 18 percent to over Rs 2.5 trillion, driven by recent tensions with a neighboring country and security concerns. The government aims to achieve a record revenue target of nearly Rs 14 trillion for the upcoming fiscal year.