PM Youth Loan Scheme: Loan Limit Increased to Rs25 Million
PM Youth Loan Scheme: Maximum Loan Increased to Rs25 Million
Age Limit Reduced to 18 Years as Government Allocates 30% of Loans for Women
ISLAMABAD, November 8, 2026: The federal government has increased the maximum loan limit under the Prime Minister’s Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million, while reducing the minimum eligibility age from 21 to 18 years.
Under the revised policy, 30 percent of the loans will be reserved for women to encourage female entrepreneurship and strengthen their participation in economic activities.
The decisions were announced during a review meeting chaired by Prime Minister Shehbaz Sharif, where officials briefed the prime minister on the progress and implementation of the youth financing programmes.
The increased loan facility will be provided through easy instalments, enabling young people to establish businesses, expand existing ventures and invest in agricultural activities.
According to the briefing, the government has allocated Rs292 billion for the schemes during the current financial year to provide financial assistance to young entrepreneurs across the country.
The prime minister directed the relevant authorities to ensure that women receive 30 percent of the total loans, describing the initiative as an important step towards their economic empowerment and greater participation in business.
He also instructed officials to lower the minimum age requirement to 18 years, allowing younger individuals to access financial support and pursue entrepreneurial and agricultural opportunities.
Sharif directed the Small and Medium Enterprises Development Authority (SMEDA) to provide comprehensive assistance to applicants, including business development guidance, consultancy services and technical support.
He further called for a nationwide awareness campaign to inform young people about the available financing opportunities and government initiatives under the loan schemes.
The prime minister said young people were among Pakistan’s most valuable assets and reaffirmed the government’s commitment to empowering them, utilising their potential and creating opportunities for decent and productive employment.
During the meeting, officials revealed that 581,341 young people had received loans under the programmes since January 2023. A total of Rs313.9 billion has been disbursed during this period, reportedly ten times higher than the financing provided over the preceding decade.
For the 2026-27 financial year, the government estimates that 266,700 young people will receive loans worth Rs292 billion.
Federal Finance Minister Senator Muhammad Aurangzeb, Special Assistant to the Prime Minister on Youth Affairs Rana Mashhood Ahmed Khan and Special Assistant to the Prime Minister on Political Affairs Talha Barqi also attended the meeting.
