Pakistan's finance minister has announced an 11 per cent increase in the country's defense budget next year.

In his televised speech before parliament Friday, Ishaq Dar outlined Pakistan's budget for 2016-17. He praised the army for its success in eliminating militant hideouts in Pakistan's tribal regions, where the Taliban until recently maintained a strong presence, but said the country continued to face a militant threat.

Pakistan's economy has been hard hit by a drop in foreign investment due to the militant violence and poverty rates are high, but defense spending has risen steadily in recent years.