The federal government has proposed interest-free loans for 86,000 beneficiaries under the Pakistan Poverty Reduction Programme in the Budget 2026–27, according to official budget documents.

The initiative aims to strengthen financial inclusion for low-income households and create income-generating opportunities for vulnerable segments of society.

Alongside poverty relief measures, the budget places strong emphasis on climate resilience. Around 80 climate adaptation and infrastructure-strengthening projects are expected to be completed in the upcoming fiscal year to help communities better withstand environmental risks.

On the youth development front, the government plans to expand the Prime Minister’s Youth Skill Development Programme, targeting training for 120,000 young people in IT and digital skills to improve employability in the fast-growing digital economy.

For capacity building initiatives, Rs5.29 billion has been allocated for IT and digital training programmes, while an additional Rs300 million has been earmarked for the Prime Minister’s Empowered Youth Internship Programme.

Overall, the federal budget for FY2026–27 is estimated at Rs17.5–17.6 trillion, reflecting a focus on fiscal discipline, IMF-supported reforms, and limited targeted relief measures.

Key revenue projections include around Rs15.3 trillion in FBR collections, Rs2.77 trillion in non-tax revenues, and approximately Rs1.73 trillion from petroleum development levy receipts.

On the expenditure side, major allocations include Rs7.8 trillion for debt servicing, Rs2.7–3 trillion for defence, and about Rs1 trillion for the Public Sector Development Programme.

The budget follows an estimated 3.7% GDP growth in the outgoing fiscal year and is also expected to include salary and pension increases of around 10%, along with efforts to broaden the tax base.