Pakistan's Federal Pension Bill Is Planned at Rs 1.17 Trillion in 2026-27, 70% Military
Pakistan plans Rs 1,169 billion for federal pensions in 2026-27, up 10.8%: Rs 822bn military and Rs 272.5bn civil. We read the Budget in Brief. Read more.
Pakistan's federal government plans to spend Rs 1,169 billion, about Rs 1.17 trillion, on pensions in 2026-27. Military pensions are Rs 822 billion of that, 70 percent, and civil pensions Rs 272.5 billion. The total is 10.8 percent more than in 2025-26.
The figures are from the Finance Division's Budget in Brief for 2026-27, dated 12 June 2026. They cover federal government pensions only. Provincial pensions sit in provincial budgets, and the pensions of state-owned companies are separate again. We read the document on 13 October 2026. The numbers are plans, not payments.
The pension bill is planned at Rs 1,169 billion
The 2026-27 budget lists four pension items. Military pensions are the largest. Civil pensions come next. The remaining Rs 74.5 billion is a federal pension fund and a provision for pension increases.
| Federal pension item | 2025-26, Rs billion | 2026-27, Rs billion |
|---|---|---|
| Military pension | 742.0 | 822.0 |
| Civil pension | 243.0 | 272.5 |
| Federal Pension Fund | 4.3 | 10.0 |
| Pension increase (civil and defence) | 65.7 | 64.5 |
| Total | 1,055.0 | 1,169.0 |
The 2025-26 column shows the budget and revised figures, which are the same in the document. The rise in military pensions is 10.8 percent and in civil pensions 12.1 percent. Both are our own arithmetic.
Military pensions are 70 percent of the pension line
Rs 822 billion of Rs 1,169 billion is 70.3 percent. Civil pensions are 23.3 percent. The remaining 6.4 percent is the pension fund and the increase provision.
Military pensions are counted in the pension line, not in the defence line of Rs 3,000 billion. That means a reader who adds only the defence budget misses Rs 822 billion of defence-related pay-outs. We state this from how the Budget in Brief arranges the lines.
The extra Rs 114 billion comes mostly from military pensions
The 2026-27 pension line is Rs 114 billion above the 2025-26 budget of Rs 1,055 billion. Military pensions add Rs 80 billion of that and civil pensions Rs 29.5 billion. The pension fund adds Rs 5.7 billion. The provision for pension increases falls slightly.
| Item | Change, Rs billion |
|---|---|
| Military pension | +80.0 |
| Civil pension | +29.5 |
| Federal Pension Fund | +5.7 |
| Pension increase provision | -1.2 |
| Total | +114.0 |
The changes are our own subtraction of the printed amounts. The document does not give a reason for each change.
The actual 2025-26 spend was lower than the plan
The provisional fiscal table for July 2025 to June 2026 shows pensions of Rs 1,001.6 billion, 0.8 percent of GDP. The budget had planned Rs 1,055 billion. Spending came in Rs 53.4 billion under the plan.
The comparison is not exact. The fiscal table is a consolidated statement of federal pension spending, and the Budget in Brief is a budget estimate. We compare them only to show direction. Measured against Rs 1,001.6 billion, the 2026-27 plan is 16.7 percent higher.
For the 7 percent pension increase from 1 July, see how the 2026 pension increase works.
Pensions take 10 percent of what the federal government keeps
After passing Rs 8,848 billion to the provinces, the federal government expects Rs 11,751 billion of its own revenue. Pensions of Rs 1,169 billion are 9.9 percent of that. Interest takes 68.5 percent, as set out in the 2026-27 budget breakdown.
Pensions are 6.2 percent of the Rs 18,771 billion of planned federal spending. Interest, defence and grants are all bigger.
| Measure | Value |
|---|---|
| Pension bill as share of federal spending | 6.2% |
| Pension bill as share of net federal revenue | 9.9% |
| Increase over 2025-26 budget | 10.8% |
| Military share of pensions | 70.3% |
What the figures do not show
The Budget in Brief gives totals. It does not say how many pensioners there are, or what the average pension is. It also does not say how much of the increase comes from new retirees and how much from the yearly rise.
The federal pension fund line of Rs 10 billion is separate from the unfunded pensions of state-owned companies. Those are set out in the report on unfunded company pensions.
- Open the Finance Division page for Federal Budget 2026-27.
- Download the Budget in Brief.
- Go to Table 10, "Current Expenditures".
- Read the rows under "(ii) Pension".
The pension bill is about Rs 97 billion a month
Divide the yearly plan of Rs 1,169 billion by 12 and the federal government must find about Rs 97.4 billion every month for pensions. Military pensions alone are about Rs 68.5 billion a month (Rs 822 billion divided by 12).
These are our own divisions of the planned totals. Real payments are not even each month, so treat them as an average.
The "pension increase" line is a provision. It is money set aside to pay the yearly rise in pensions, and it is not a pension paid to a separate group of people.
Common questions
How much will the federal government spend on pensions in 2026-27?
It plans Rs 1,169 billion, according to the Budget in Brief.
How much of that is military pension?
Rs 822 billion, about 70 percent.
How much is civil pension?
Rs 272.5 billion, about 23 percent.
Does this include provincial employees?
No. It covers the federal government only. Provincial pensions are in each province's budget.
How much did pensions cost in 2025-26?
The provisional fiscal table shows Rs 1,001.6 billion. The budget plan was Rs 1,055 billion.
Is military pension part of the defence budget?
No. In the Budget in Brief it is a separate line under pensions.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked on 13 October 2026, Pakistan time. We read Table 10 of the Budget in Brief 2026-27 and the pension row of the July to June 2025-26 table on the Pakistan Fiscal Operations page. We did not read pension rules or pensioner counts. Shares and growth rates are our own arithmetic.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
