Youth Loan Scheme: Pakistan Raises Maximum Financing Limit to Rs25 Million

Prime Minister Shehbaz Sharif has raised the maximum loan limit under the Prime Minister’s Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million, expanding access to financing for young entrepreneurs and farmers.

The prime minister also reduced the minimum eligibility age from 21 to 18 years and directed authorities to reserve 30% of loans for women.

The decisions were announced during a review meeting on Sunday, where Shehbaz instructed officials to offer loans through easy instalments to help young people establish businesses, expand existing operations and pursue agricultural activities.

According to a briefing presented at the meeting, the schemes have provided loans worth Rs313.9 billion to 581,341 young people since January 2023. Officials said the number of beneficiaries was ten times higher than in the preceding decade.

For the fiscal year 2026-27, the government has allocated Rs292 billion to provide financing to approximately 266,700 young people.

To support applicants beyond financial assistance, the prime minister directed the Small and Medium Enterprises Development Authority (SMEDA) to provide business consultancy, technical guidance and start-up support to young entrepreneurs.

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He also called for a nationwide awareness campaign to inform eligible applicants about the financing schemes and available business opportunities.

Shehbaz said the government aimed to expand employment opportunities and encourage young people’s participation in business and agriculture, with particular attention to women’s financial independence.

Finance Minister Muhammad Aurangzeb, Special Assistant to the Prime Minister on Youth Affairs Rana Mashhood Ahmed Khan and Special Assistant on Political Affairs Talha Burki attended the meeting.