ISLAMABAD: The poverty alleviation and social safety measures announced in the budget for fiscal year 2026-27 focus on expanding cash transfers and offering micro-loans and skilled training for youth.
The government has allocated a historic Rs838 billion for the Benazir Income Support Programme (BISP) in the fiscal year 2026-27 federal budget. This marks a 17 per cent increase in funding to support millions of beneficiary households across Pakistan.
In his speech, the Federal Finance Minister Muhammad Aurangzeb said that the government plans to enhance the BISP coverage. To implement this, he said that the government targets to reach 12 million families under Kifalat program of BISP. Currently 10.2 million families are the beneficiaries of the program.
The Federal Minister said during the current fiscal year, they will identify, register, and verify all subsidy beneficiaries across the country so that a Direct Subsidy Mechanism can be introduced in Pakistan by January 2027. “This will ensure that subsidies reach only the intended and eligible beneficiaries. It is the same fair and transparent model that we have successfully implemented/adopted through BISP,” he said.
For the fiscal year 2026–27, the Government proposed a 7 per cent increase in the salaries and pensions of federal public sector employees. Additionally, the administration suggested a 10 per cent increase in the national minimum wage to provide relief to low-income workers facing high living costs. Another proposal is to increase transport allowance for Persons with Disability from Rs4,000 to 6,000 per month.
