ISLAMABAD: Finance Minister Ishaq Dar and Chief of Army Staff General Raheel Sharif on Saturday agreed to increase the defence budget from 15 to 20 per cent for the coming fiscal year, DawnNews quoted sources as saying.

Dar said in view of the country's security situation, all defence needs would be adequately met, sources added.

The minister said defence was amongst the government's topmost priorities, adding that all necessary resources would be provided to the forces in order to strengthen security.

The minister’s statements came as he met with General Sharif during which the two discussed the defence budget for the coming fiscal year.

With a 15 to 20 per cent increase, the final figure for the country’s defence budget is likely to exceed Rs700bn — a significant boost to the existing Rs627bn for the current fiscal year.