Pakistan Raises Youth Business Loan Limit to Rs25 Million, Lowers Minimum Age to 18

The government has increased the maximum personal loan available under the Prime Minister's Youth Business and Agriculture Loan schemes from Rs7.5 million to Rs25 million, according to a release from the Prime Minister's Office. The minimum age to apply has also been reduced from 21 to 18 years, widening eligibility for first-time entrepreneurs and young farmers.

Prime Minister Shehbaz Sharif announced the changes while chairing a review meeting on the schemes. He directed that 30 percent of all loans be set aside for women, a step aimed at increasing female participation in business and agricultural financing. Officials told the meeting that the larger loans will be offered on easy installment plans.

A total of Rs292 billion has been allocated for the schemes this year. According to the briefing, 581,341 young people have received loans worth Rs313.9 billion since January 2023, a figure roughly ten times higher than the total disbursed over the previous ten years. Around 266,700 young people are expected to receive financing in 2026-27.

The prime minister instructed the Small and Medium Enterprises Development Authority (SMEDA) to support young people starting businesses through mentoring, advice and technical assistance. He also ordered a nationwide awareness campaign to ensure more young people can take advantage of the schemes.

Sharif praised Finance Minister Muhammad Aurangzeb and his team for arranging financing for young entrepreneurs and farmers, describing young people as a valuable national asset and saying the government is committed to creating decent and productive jobs. The meeting was also attended by Special Assistant on Youth Affairs Rana Mashhood Ahmad Khan and Special Assistant on Political Affairs Talha Burki.

The higher ceiling and lower age limit are expected to broaden access to credit for first-time business owners and young farmers across the country. Earlier figures showed that women entrepreneurs had secured about Rs29 billion under the youth loan scheme.