Prime Minister Shehbaz Sharif has tripled the maximum loan available under the PM Youth Business and Agriculture Loan Schemes, raising the ceiling to Rs 25 million from the previous Rs 7.5 million. The minimum eligibility age has also been lowered from 21 to 18, and women will receive 30 percent of all loans disbursed under the schemes. The prime minister announced the changes at a review meeting on Sunday. The decision widens the scope of the schemes in terms of both loan size and the age of applicants, and it comes at a time when the government is trying to encourage young people to start or expand their own businesses.
The review meeting was also informed about the progress of the existing programme. Since January 2023, 581,341 young people have borrowed Rs 313.9 billion through the schemes, and according to the briefing this number of beneficiaries is ten times higher than the total for the previous decade. For the current fiscal year, the government has set aside Rs 292 billion, which is meant to reach approximately 266,700 young people in FY2026-27. The figures point to strong demand among young Pakistanis who want to launch or grow a business, and they explain why the government has decided to increase the amount that can be borrowed.
The Small and Medium Enterprises Development Authority (SMEDA) has been tasked with offering business advice, technical assistance, and startup support to those who receive loans. The prime minister also ordered a nationwide awareness campaign so that eligible applicants know that the schemes exist. A higher ceiling of Rs 25 million makes it possible to consider ventures that need more capital than a small shop or basic service, such as light manufacturing, technology startups, small-scale agriculture, and businesses that depend on equipment. The change in the age limit also allows a young person who finishes intermediate education at 18 to apply right after turning 18, rather than waiting three years.
The 30 percent allocation for women is aimed at a persistent gap in entrepreneurship, since women often face greater difficulty in reaching formal credit because of documentation requirements, collateral expectations, and social factors. A fixed share gives the government a measurable target against which progress can be checked. The announcement also arrives as Pakistan’s technology and freelance sector continues to grow, with freelancers earning a record $1.76 billion in FY2025-26 and IT exports reaching $4.6 billion. Easier access to business credit may help some individual freelancers and young founders to move from working alone to building companies with employees, equipment, and formal structures, in a country where 64 percent of the population is under 30.
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