The government has planned to distribute interest-free loans to 86,000 individuals under the Pakistan Poverty Reduction Program in the federal Budget 2026–27, according to official documents shared with ProPakistani.
The initiative is aimed at supporting low-income households by improving access to financial assistance and helping create livelihood opportunities for vulnerable segments of society.
In addition to poverty alleviation measures, the budget also prioritizes climate resilience. Around 80 projects focused on climate adaptation and infrastructure strengthening are expected to be completed during the upcoming fiscal year to help communities cope with environmental challenges.
On the youth development side, the government plans to scale up the Prime Minister’s Youth Skill Development Program, with a target of training 120,000 young people in IT and digital skills to enhance employability in the growing digital economy.
For capacity building, Rs. 5.29 billion has been allocated for IT and digital skills training initiatives. Separately, Rs300 million has been set aside for the Prime Minister’s Empowered Youth Internship Program.
The overall federal budget for FY2026–27 is estimated at Rs. 17.5–17.6 trillion, focusing on fiscal consolidation, IMF-linked reforms, and limited relief measures.
Key fiscal projections include an FBR revenue target of around Rs. 15.3 trillion, non-tax revenues of Rs. 2.77 trillion, and petroleum development levy receipts of approximately Rs. 1.73 trillion.
Major expenditures are expected to go toward debt servicing (Rs. 7.8 trillion), defence spending (Rs. 2.7–3 trillion), and a constrained Public Sector Development Program of around Rs. 1 trillion.
The budget follows an estimated 3.7 percent GDP growth in the outgoing fiscal year and is also expected to include salary and pension increases of around 10 percent, alongside efforts to expand the tax base.