PM raises youth loan limit to Rs25m

LAHORE: Prime Minister Muhammad Shehbaz Sharif has increased the maximum loan limit under the Prime Minister’s Youth Business Loan Scheme and Youth Agriculture Loan Scheme from Rs7.5 million to Rs25 million, aiming to expand financial opportunities for young entrepreneurs and encourage greater participation of youth in the agriculture sector.

The decision was taken during a high-level meeting chaired by the prime minister to review the implementation of the two schemes and assess progress in providing financial assistance to young people across the country.

The prime minister directed the relevant authorities to ensure that loans were provided on easy installments so that young entrepreneurs could establish and expand their businesses and undertake agricultural activities without facing unnecessary financial difficulties.

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According to the briefing, a total of Rs292 billion has been allocated for providing loans to young people under the schemes during the current financial year. During 2026-27, an estimated 266,700 young people are expected to benefit from the programme.

The meeting was informed that since January 2023, as many as 581,341 young people had received loans under the programme, a figure ten times higher than the number of beneficiaries recorded during the preceding decade. So far, loans amounting to Rs313.9 billion have been disbursed under the initiative.

The prime minister directed that 30 per cent of the total loans under the programme be reserved for women to promote their economic empowerment and encourage their participation in entrepreneurial and business activities.

He also ordered a reduction in the minimum eligible age for obtaining loans from 21 to 18 years, enabling young people to start their businesses at an earlier stage and participate in agricultural ventures.

Emphasising the importance of institutional support, the prime minister directed the Small and Medium Enterprises Development Authority (SMEDA) to extend comprehensive assistance to young applicants, including guidance on setting up businesses, business advisory services, consultancy and technical support.

He further instructed the relevant authorities to launch a comprehensive nationwide awareness campaign to inform young people about the loan schemes, available opportunities and government initiatives, ensuring that maximum numbers of eligible applicants could benefit from the facilities.

During the meeting, various proposals and measures were also discussed to empower young people, create new business opportunities and increase their participation in the agriculture sector. Appreciating the efforts of Finance Minister Senator Muhammad Aurangzeb and his team in establishing effective financial support mechanisms for youth-led businesses and agricultural activities, the prime minister stressed the importance of ensuring transparent, efficient and timely implementation of the schemes.

Addressing the meeting, Prime Minister Shehbaz Sharif said that the youth were Pakistan’s most valuable asset. He reaffirmed that the government was committed to empowering young people, harnessing their potential and providing them with opportunities for dignified and productive employment.

He said that facilitating young entrepreneurs and supporting their business and agricultural initiatives were essential for strengthening the national economy, generating employment and ensuring sustainable economic growth.

The meeting was attended by Finance Minister Senator Muhammad 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 Barki.

Copyright Business Recorder, 2026