ISLAMABAD, April 16: The national budget for 2008-09 is expected to introduce ‘targeted programmes’ for generating employment for educated youths, people without education and women.

The coalition government is reported to have directed the authors of the budget to focus their efforts on job creation.

Informed sources said that the employment policy prepared by the previous government, but not announced, was being modified.

Prime Minister Syed Yusuf Raza Gilani wants a new policy to enhance the literacy rate and offer a micro-credit to the people.

In this regard, the sources said, a consortium of four banks had been proposed by official planners to extend small loans to educational institutions for which they will be offered certain tax exemptions.

Similarly, the private sector will be given rebates and concessions in income tax for increasing employment opportunities.

The new National Employment Policy seeks to create one million jobs each year, mainly in industrial, agricultural, housing and construction sectors.

“We have also recommended in the new policy the creation of model pilot employment schemes in Sindh and Balochistan to offer jobs to unemployed youths,” an official said.

The caretaker government, he said, had accepted most of the proposals contained in the new policy which is now expected to be approved by the new government soon.

The government has asked its planners to also propose measures to start pilot projects in the gems and jewellery and livestock sectors of the NWFP and Balochistan.

The official said that over one million jobs could be created every year in all major sectors.

He said detailed recommendations had also been given to create new jobs in the Small and Medium Enterprise (SME) sector by prompting cottage industry.

The official said there were certain problems in the textile sector and once these were resolved, a substantial number of jobs could be created in industries.

He said that he and his team had given a supporting mechanism to implement the new employment policy and for first time serious measures had been proposed to deal with unemployment.

He claimed that unemployment had gone down from 8.3 per cent to 5.9 per cent which could be further lowered if his recommendations were accepted.