TRULY Pakistan’s greatest strength does not only lie beneath its soil or within its natural resources—it lies in the energy, talent and aspirations of its young people also. With nearly 70 percent of the country’s population below the age of 30, Pakistan possesses one of the world’s largest youth populations. This demographic reality presents an extraordinary opportunity, provided the state invests wisely in education, skills, entrepreneurship and employment. The Federal Budget for FY 2026–27 demonstrates that the government, under Premier Shehbaz Sharif, has recognized this opportunity and placed youth empowerment at the heart of its national development agenda. The allocation of PKR 40.58 billion for (PMYP), complemented by an additional PKR 21 billion through various ministries for youth-focused initiatives, represents the largest federal investment in youth development in Pakistan’s history. It reflects a strategic shift from providing temporary assistance to creating long-term economic opportunities that can transform Pakistan’s future. Premier’s vision of converting young Pakistanis from job seekers into job creators is both timely and forward-looking. Across the world, economic growth is increasingly being driven by innovation, entrepreneurship and technology rather than conventional public-sector employment. Pakistan’s youth possess enormous entrepreneurial potential and the government’s policies are designed to unlock that potential through financial inclusion, skills development and digital connectivity.
The centrepiece of this vision is Premier’s Youth Business and Agriculture Loan Scheme, which has received the largest allocation of PKR 22.4 billion. The programme has already produced encouraging results by disbursing PKR 365.5 billion to more than 6 lac 25 thousand borrowers, supporting nearly 1.96 m jobs across Pakistan. These figures illustrate that government-backed financing can become a powerful catalyst for entrepreneurship, particularly for young people who previously lacked access to affordable capital. Equally commendable is the government’s decision to reserve a 25 percent quota for women under the financing programme. By expanding economic opportunities for young women, the government is promoting inclusive growth and ensuring that Pakistan’s development benefits from the talents of its entire population. Recognizing that employment begins with education and skills, the government has allocated more than PKR 9.9 billion for the Youth Skills Development Programme. The emphasis on artificial intelligence, blockchain, data science, digital technologies and other emerging sectors reflects a clear understanding of where the global economy is heading. Instead of preparing youth for yesterday’s jobs, these programmes seek to equip them for tomorrow’s opportunities.
Education remains another major pillar of the government’s youth strategy. The allocation of PKR 24.48 billion for expanding the Danish Schools Network, together with PKR 3 billion for the Pakistan Education Endowment Fund, demonstrates a strong commitment to providing quality education to talented students, especially those from underprivileged backgrounds. Through Premier’s Laptop Scheme, over 6 lac laptops have already been distributed, with another one lac currently being provided under Phase IV. The Digital Youth Hub has emerged as one of the country’s most innovative platforms for connecting young Pakistanis with scholarships, internships, employment opportunities, entrepreneurial support, sports programmes and educational resources. With more than 8 lac registered users, over 1.6 m downloads and more than one lac 14 thousand job listings, the platform reflects the government’s commitment to transparency, merit and equal opportunity.
One of the most encouraging aspects of the government’s youth agenda is the National Youth Employment Policy, which seeks to address the challenge of millions of young people who are currently not in education, employment or training. By aligning skills with market demand, expanding entrepreneurship and targeting full absorption of new labour-force entrants by 2030 while increasing female labour-force participation to 35 per cent, the policy offers a comprehensive roadmap for sustainable employment generation.
Effective implementation will remain the key to maximizing the impact of these ambitious initiatives. Encouragingly, many flagship programmes under the (PMYP) have already demonstrated measurable progress, providing a strong foundation upon which further success can be built. With continued political commitment, institutional coordination and transparent execution, these initiatives have the potential to transform millions of lives. The FY 2026–27 Youth Budget is far more than an annual financial exercise; it is a strategic investment in Pakistan’s future. Every scholarship awarded, every entrepreneur financed, every student trained, every startup launched and every employment opportunity created strengthens the country’s economic foundations. The government has presented a comprehensive vision that seeks to harness Pakistan’s demographic dividend and transform its youth into the driving force behind sustainable economic growth. If this momentum continues, Pakistan’s young generation will not only shape the nation’s future but also position the country as a dynamic and competitive economy in the years ahead.
—The writer is editor, political analyst and author of several books based in Islamabad.
