ISLAMABAD (AP) — Pakistan 's finance minister on Friday presented the government's new budget to lawmakers, a draft that hikes defense spending by 18% while trimming funding for development programs and offering modest tax reliefs for salaried workers.
The proposal underscores the struggles of Prime Minister Shehbaz Sharif's government in dealing with slow growth, high living costs and uncertainty amid regional tensions and the war the Middle East.
Pakistan has emerged as a key mediator in bringing Iran and the United States to the negotiating table in efforts to resolve the ongoing war. Talks have stalled, though a tenuous ceasefire is in place.
