Prime Minister Shehbaz Sharif has announced major revisions to Pakistan’s Youth Business and Agriculture Loan Schemes, increasing the maximum individual financing limit to Rs25 million and allowing applicants as young as 18 to apply.
The revised policy raises the previous loan ceiling of Rs7.5 million, giving young entrepreneurs and aspiring farmers access to larger amounts of financial assistance.
The prime minister also directed authorities to reserve 30% of the loans for women to encourage female entrepreneurship and improve their participation in economic activities.
He announced the decisions while chairing a meeting on Sunday to review the progress and implementation of the government’s youth financing programmes.
According to the Prime Minister’s Office, the loans will be provided through easy instalment arrangements to support young people interested in establishing businesses and undertaking agricultural projects.
Youth Loan Limit Increased From Rs7.5 Million to Rs25 Million
Under the revised arrangements, eligible applicants will be able to seek financing of up to Rs25 million, compared with the previous maximum limit of Rs7.5 million.
The increase is intended to provide greater financial flexibility to young Pakistanis planning to establish new businesses or expand existing ventures.
The government also aims to encourage investment in agricultural activities by making larger financing facilities available to eligible applicants.
Prime Minister Shehbaz Sharif directed the relevant authorities to ensure that the loan facility supports productive economic activities and creates employment opportunities.
Minimum Age for Youth Loans Reduced to 18 Years
Another major change concerns the minimum age requirement for applicants.
Previously, young people had to be at least 21 years old to qualify for financing under the programme. The prime minister has now directed officials to reduce this requirement to 18 years.
The revised age limit will open the programme to a wider group of young Pakistanis, including individuals who want to begin their entrepreneurial journeys immediately after reaching adulthood.
The government expects the change to encourage early participation in business and agriculture while providing younger applicants with opportunities to develop independent sources of income.
30% of Youth Loans Reserved for Women
The prime minister has also ordered authorities to allocate 30% of the available loans to women.
The measure is aimed at improving women’s access to financial resources and encouraging them to establish independent businesses.
Through this allocation, the government intends to increase female participation in entrepreneurship and strengthen women’s role in Pakistan’s economy.
The initiative will provide additional financing opportunities for women seeking to establish or expand business ventures under the programme.
Rs292 Billion Allocated for Youth Financing in 2026-27
The meeting also reviewed the overall financial performance of the government’s youth lending initiatives.
Officials informed the prime minister that Rs292 billion had been allocated for financing young people during the 2026-27 financial year.
The government estimates that approximately 266,700 young applicants will benefit from the financing during this period.
The briefing further revealed that 581,341 young people had received loans worth approximately Rs313.9 billion since January 2023.
These figures were presented during the review meeting to highlight the programme’s progress and the scale of financial assistance provided to young entrepreneurs and agricultural applicants.
SMEDA to Provide Business Guidance and Technical Assistance
Alongside increasing the financing limit, Prime Minister Shehbaz Sharif has directed the Small and Medium Enterprises Development Authority (SMEDA) to strengthen its support for young applicants.
The authority will assist aspiring entrepreneurs through business consultancy, start-up guidance and technical support.
This assistance is intended to help applicants prepare business plans, understand commercial requirements and manage their projects more effectively.
The prime minister also instructed relevant authorities to launch a nationwide awareness campaign so that more eligible young people could learn about the financing opportunities.
He appreciated the efforts of Finance Minister Muhammad Aurangzeb and his team in improving financial support arrangements for young entrepreneurs and people interested in agricultural activities.
Government Aims to Expand Youth Participation in Business and Agriculture
The review meeting focused on measures to strengthen entrepreneurship, generate employment and increase young people’s involvement in Pakistan’s agricultural sector.
Special Assistant to the Prime Minister on Youth Affairs Rana Mashhood Ahmed Khan and Special Assistant on Political Affairs Talha Burki also attended the meeting alongside senior government officials.
The revised Pakistan Youth Loan Scheme is expected to widen access to financing through higher loan limits, a lower eligibility age and a dedicated allocation for women.
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However, applicants should check the official programme announcements for updated application procedures, eligibility conditions, financing categories and implementation details before submitting applications.
