ISLAMABAD: The federal government has allocated Rs46 billion for the higher education sector in the budget for fiscal year 2026-27, with significant funding earmarked for digital learning, artificial intelligence initiatives and youth development programmes.
Presenting the federal budget in the National Assembly on Friday, Finance Minister Muhammad Aurangzeb said Rs3.6 billion have been allocated for the upgradation of the Pakistan Education and Research Network (PERN), as well as projects aimed at promoting artificial intelligence and digital learning across the country.
The finance minister announced that approximately Rs22 billion have been earmarked for the Danish Schools system, while Rs7.9 billion have been allocated under the Prime Minister’s Youth Skills Development Programme to enhance vocational training and employment opportunities for young people.
Aurangzeb said the government has also set aside Rs13 billion for governance reforms and institutional capacity-building initiatives aimed at improving public sector performance and service delivery.
As part of regional development spending, the government has allocated Rs144.9 billion for Azad Jammu and Kashmir, Gilgit-Baltistan and the merged districts of Khyber Pakhtunkhwa to support infrastructure, development and public welfare projects in those areas.
The finance minister presented the Rs17.5 trillion federal budget for fiscal year 2026-27 amid protests and sloganeering by opposition members belonging to the Pakistan Tehreek-e-Insaf (PTI) in the National Assembly.
Addressing lawmakers, Aurangzeb said the budget had been prepared in the aftermath of Operation Bunyan Marsoos, which he said demonstrated the country’s resilience in the face of external security challenges.
He paid tribute to Pakistan’s armed forces, stating that they had responded effectively to aggression and safeguarded national interests. He emphasised that maintaining a strong defence capability remained essential for national security and added that Pakistan’s defence manufacturing industry had gained international recognition, with locally produced fighter aircraft attracting growing interest in global markets.