Loan amount under PM's Youth Program raised to Rs 1.5 million

PM directs new category for small businesses and women entrepreneurs to ease loan access and government support.

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Prime Minister of Pakistan, Shehbaz Sharif, has directed an increase in the loan amount under the Youth Program from Rs 500,000 to 1.5 million.

A review meeting on small and medium-sized businesses was held today in Islamabad, chaired by Prime Minister Shehbaz Sharif, during which the Prime Minister instructed a detailed survey to be completed soon to facilitate businesses.

During the meeting, the Prime Minister emphasised aligning the facilities provided to small and medium-sized businesses with international standards by implementing models from developed countries.

He also directed that a special package for women entrepreneurs in small-scale businesses be prepared and presented soon.

The Prime Minister noted that small and medium enterprises (SMEs) are key to global economic development. The government is committed to encouraging SMEs to promote entrepreneurship within Pakistan's workforce.

Shehbaz Sharif highlighted that the government is working towards empowering youth and women entrepreneurs to create self-employment and generate more job opportunities.

In light of the Prime Minister’s special directives, the meeting was briefed on progress regarding government actions to support and develop SMEs.

It was shared that, as per the Prime Minister’s directive, after taking all stakeholders into confidence, the loan application process for SMEs has been simplified to ensure that more businesses can benefit from the loan facilities to improve their operations.

Additionally, SMEs are being categorised to ensure that small and medium-sized businesses can fully utilise government support and facilities and have timely and easy access to loans under simplified terms.

The meeting was further informed that, under the Prime Minister's guidance, a new category will be introduced for very small-scale businesses and home-based women entrepreneurs, making obtaining loans and receiving government assistance to improve their businesses easier.

The Pakistan Bureau of Statistics provided updates on SME indicators from three major cities and shared plans for a nationwide survey to improve facilities for SMEs across the country in the coming months.

A comprehensive briefing was given on the government's action plan to support SMEs and its timelines. It was stated that SMEDA would launch financial literacy and training programs for SMEs by February this year. Additionally, a program to introduce modern technology to SMEs will be finalised and launched by mid-2025.

Federal Ministers Rana Tanveer Hussain and Ahmed Khan Cheema, Minister of State Sheza Fatima Khawaja, State Bank Governor Jameel Ahmed, Chief Secretaries of all four provinces, representatives from the SME sector, and relevant senior officials attended the meeting.

Earlier, Prime Minister Shehbaz hailed the drastic reduction of Rs30 per unit in the power tariff for EVs as a propitious step for the sector to boost emission-free and eco-friendly vehicles in the country.

The prime minister, chairing a meeting to discuss promoting the Electric Vehicle Policy, appreciated Power Minister Awais Ahmed Leghari and his team for devising a convincing proposal to facilitate the EV manufacturers' rollout of subsidised charge-based automobiles in the country.

"They (the power minister and his team) have drastically reduced the tariff in this sector from Rs70 to Rs40 per unit. It will encourage the investors and industry partners to tap more investments into the EVs sector," he said.

Yesterday, the Prime Minister welcomed the World Bank's pledge of $20 billion under its first-ever 10-year Country Partnership Framework (CPF) for Pakistan.

The prime minister, in a social media post on his X timeline, said that while focusing on six key areas, including child nutrition, quality education, clean energy, climate resilience, inclusive development, and private investment, CPF reflected Pakistan's national priorities, as envisioned in its Home Grown Economic Transformation Plan.