PM raises youth loan limit to Rs25m

Minimum eligibility age lowered to 18 30% of lending reserved for women Rs292 billion allocated for current year

ISLAMABAD:

Prime Minister Shehbaz Sharif on Sunday increased the maximum loan limit under the Prime Minister's Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million, while lowering the minimum eligibility age from 21 to 18 years to expand access to financing for young entrepreneurs.

Chairing a meeting to review the implementation of the two schemes, the prime minister also directed that 30% of the loans be reserved for women to promote their economic independence and encourage their participation in business and agricultural activities.

The loans will be provided on easy instalments, while Rs292 billion has been allocated for the current year to finance young people's business and agricultural ventures under the programmes, the Prime Minister's Office Media wing said in a statement.

According to a briefing given to the prime minister, 581,341 young people have received loans since January 2023, around 10 times the number of beneficiaries recorded during the preceding 10 years. Loans worth Rs313.9 billion have been disbursed during this period.

For the financial year 2026-27, the government has set a target of providing Rs292 billion in loans to 266,700 young people, the meeting was informed.

Shehbaz directed the Small and Medium Enterprises Development Authority (SMEDA) to provide comprehensive support to young applicants, including assistance in establishing businesses, professional guidance, business consultancy and technical support.

He also called for a nationwide awareness campaign to inform young people about the schemes, available financing opportunities and other government initiatives, stressing the need to ensure that the maximum number of eligible applicants benefit from the programmes.

The meeting also discussed measures to empower young people, expand entrepreneurial opportunities and increase their participation in the agricultural sector.

Appreciating the efforts of Finance Minister Muhammad Aurangzeb and his team, the prime minister said the government was committed to creating effective financial support mechanisms for young people to pursue business and agricultural activities.

He described the country's youth as a valuable national asset and reiterated the government's commitment to harnessing their potential and providing them with dignified and productive employment opportunities.

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