The centre-right government -- a minority coalition propped up by the anti-immigration Sweden Democrats -- came to power in 2022 vowing to get tough on immigration.

The new initiative comprises three billion kronor ($284 million) over the period 2024-2028, Development Aid Minister Benjamin Dousa said.

"With this aid we will increase assistance to neighbouring countries, which in the long term will reduce irregular migration to Sweden and the EU," he said.

Many undocumented asylum seekers entering Sweden have fled countries plagued by conflict, repression, natural disasters or poverty.

Sweden has an overall aid budget of $5.3 billion per year for 2026-2028, half of which is earmarked for Ukraine.

The three billion kronor will be used to pay for the repatriation of would-be asylum seekers.

It will also contribute to strengthening infrastructure in the countries they are fleeing and those they cross on their way to Sweden and other members of the European Union.

The aim is to keep them near their home countries.

"We want to ensure that humanitarian aid, long-term development work and peace, security and stability will interplay to counteract the root causes of forced displacement and irregular migration," said Ludvig Aspling, spokesman on migration issues for the populist, nationalist Sweden Democrats.

The aim is also "to help people find work, provide psycho-social support and offer them professional training", Aspling said.

The government said it wanted to combat people trafficking along migration routes.

The Scandinavian country has offered generous development aid since the 1970s and has taken in large numbers of refugees since the 1990s.

Many fled from countries like Afghanistan, Iran, Iraq, Somalia, Syria and the former Yugoslavia.

But since a large influx into Sweden in 2015, successive left- and right-wing governments have made the rules on asylum more severe.

Measures include issuing only temporary residence permits to asylum seekers, tightening family reunification requirements and hiking income requirements for work visas for non-EU citizens.

In September the current government announced plans to offer asylum seekers $34,000 to leave the country and make it easier to expel migrants for substance abuse, association with criminal groups or statements threatening "Swedish values".