ISLAMABAD – Pakistani government is planning to provide interest-free loans to 86,000 Pakistanis under Budget 2026-27 as the initiative seeks to help low-income households start small businesses, generate income, and move towards financial independence in the upcoming fiscal plan.
Amid several reliefs, the provision of interest-free loans to 86,000 individuals under the Pakistan Poverty Reduction Program (PPRP) amassed attention. The initiative is aimed at helping low-income households access capital without paying interest, enabling beneficiaries to start small businesses, expand existing ventures, or generate new sources of income.
Officials view the scheme as tool to encourage self-employment and reduce dependence on financial assistance. The government is also planning major expansion of PM Youth Skill Development Program, with target of training 120,000 young Pakistanis in information technology and digital skills during the next fiscal year.
The move comes as demand for technology-related expertise continues to grow globally. By equipping young people with digital competencies, policymakers hope to improve employment opportunities, increase participation in the digital economy, and strengthen Pakistan’s skilled workforce.
The government also proposed Rs5.29 billion for IT and digital skills training programs. In addition, Rs300 million has been allocated for the Prime Minister’s Empowered Youth Internship Program, which is designed to provide practical workplace experience and help graduates transition into the job market.
Another key feature of upcoming budget is a stronger focus on climate adaptation. Authorities plan to complete approximately 80 climate-related projects aimed at improving infrastructure and enhancing resilience against environmental challenges. The projects are expected to focus on protecting vulnerable communities from the growing impact of floods, heatwaves, water stress, and other climate-related risks. The emphasis reflects increasing recognition of climate change as both an environmental and economic challenge for Pakistan.
The overall federal budget for FY2026-27 is expected to range between Rs17.5 trillion and Rs17.6 trillion. The government is seeking to balance public welfare spending with fiscal discipline, while continuing reforms linked to its commitments under the IMF program.
On the revenue side, Federal Board of Revenue (FBR) is likely to receive tax collection target of around Rs15.3 trillion, representing one of the highest revenue goals in the country’s history. Non-tax revenues are projected at Rs2.77 trillion, while petroleum levy collections are estimated at roughly Rs1.73 trillion.
The proposed measures suggest Budget 2026-27 will focus on three key objectives, supporting vulnerable households through interest-free financing, improving youth employability through digital skills training, and strengthening climate resilience, while simultaneously pursuing revenue growth and fiscal consolidation.
Budget 2026-27: Federal Cabinet weighs Two-Phase Salary Hike, Pension Relief
