Pakistan's 2025-26 budget cuts overall spending by 7% but boosts defense 20% post, India conflict, aiming for 4.2% growth amid IMF reforms and inflation.

• Defense spending rises to $9B, driven by recent India clashes; includes $2B for equipment.
• Growth projected at 4.2%, inflation 7.5%; IMF discipline and U.S. tariffs pose challenges.
• India’s defense budget is at $78.7B; economists warn fiscal constraints may hinder growth.