The government has decided to provide interest-free loans to 86,000 people under the Pakistan Poverty Reduction Programme in Budget 2026-27, while also expanding youth training and climate-related development projects.
According to the budget document, 86,000 people will receive interest-free loans under the Pakistan Poverty Reduction Programme in the new fiscal year.
The initiative is aimed at supporting low-income citizens by improving access to financial assistance and livelihood opportunities.
The government has also set a target to complete 80 infrastructure projects to combat climate change. These projects are expected to strengthen climate resilience and support communities facing the impact of changing weather patterns.
Youth skill development programme
The budget document shows that implementation of the Prime Minister’s Youth Skill Development Programme will be accelerated in the new fiscal year.
Under the programme, 120,000 youth will be trained in IT and digital skills to improve employment prospects in the modern job market.
Funding for youth training and internships
The government has allocated Rs5.29 billion for IT and digital skills training in the new budget. Separately, Rs300 million has been earmarked for the Prime Minister’s Empowered Youth Internship Programme.
Budget 2026-27
The total outlay of Pakistan's federal budget 2026-27 is estimated at around Rs 17.5–17.6 trillion, with a focus on fiscal consolidation, IMF compliance, and modest relief measures.
Key figures include an ambitious FBR tax target of around Rs15.3 trillion, non-tax revenue of Rs2.77 trillion, and Petroleum Development Levy of Rs1.73 trillion.
Major expenditures are dominated by debt servicing (Rs7.8 trillion), defence (Rs 2.7–3 trillion), and a constrained federal PSDP of Rs1 trillion (national development outlay Rs 3.2–3.7 trillion).
The budget follows an Economic Survey showing around 3.7% GDP growth in the outgoing year and includes expected 10% salary/pension increases alongside tax base broadening efforts.
