Prime Minister Shehbaz Sharif has raised the youth loan limit from Rs7.5 million to Rs25 million under the Prime Minister’s Youth Business and Agriculture Loan Schemes, in a move aimed at helping young Pakistanis start and grow businesses and farms.
The decision came at a meeting in Islamabad on Sunday, where the prime minister reviewed how the two schemes are working and how loans are reaching young borrowers, The Express Tribune reported. The government has set aside Rs292.5 billion for youth loans in the current financial year, 2026-27.
The prime minister also ordered that 30 per cent of the loans be kept for women, and that the minimum age for applicants fall from 21 to 18 years. Both steps widen the net for first-time borrowers.
The meeting was told that 581,341 young people have received loans since January 2023, ten times the number in the ten years before that. Loans worth Rs313.9 billion have been paid out in that period. In 2026-27, officials expect about 266,700 more young people to receive loans worth Rs292.5 billion.
What the new youth loan limit means for applicants
The official advertisement for the 2026-27 scheme, issued by the Ministry of Information and Broadcasting, sets out four tiers. The smallest loans carry no markup, while larger loans carry up to 8 per cent.
| Tier | Loan amount | Markup |
|---|---|---|
| Tier 1 | Up to Rs5 lakh | No markup |
| Tier 2 | Rs5 lakh to Rs15 lakh | 5 per cent |
| Tier 3 | Rs15 lakh to Rs75 lakh | 7 per cent |
| Tier 4 | Up to Rs2.5 crore | 8 per cent |
Until now, only IT and e-commerce applicants could apply at 18. The order extends that lower age to every applicant.
Applications go through the Prime Minister’s Digital Youth Hub at pmyp.gov.pk. The advertisement lists no closing date, so applications stay open through the financial year. Young people seeking work abroad can also get an interest-free loan of up to Rs10 lakh for travel and documents.
Women get a 30 per cent share
Earlier this year, the chairman of the Prime Minister’s Youth Programme, Rana Mashhood Ahmad Khan, said women made up about 11 per cent of borrowers, with work under way to lift the share. A fixed 30 per cent quota goes well beyond that target.
The quota could matter most for women running home-based businesses, who often find formal credit hard to reach.
SMEDA to guide young borrowers
The prime minister directed the Small and Medium Enterprises Development Authority (SMEDA) to help young borrowers with guidance on starting a business, consultancy and technical support. SMEDA is itself working through a revival plan drawn up to sharpen its support for small firms.
He also ordered a countrywide awareness campaign so more young people learn about the schemes. Finance Minister Muhammad Aurangzeb attended, along with Special Assistants Rana Mashhood Ahmad Khan (Youth Affairs) and Talha Barqi (Political Affairs). The prime minister praised Aurangzeb and his team for the arrangements to support young borrowers.
The prime minister told the meeting that young people are a valuable asset for Pakistan, and that the government is committed to empowering them and providing decent and productive work.
Small business lending is growing
The youth scheme sits inside a wider push on small business credit. SME financing in Pakistan has crossed Rs1.1 trillion, and banks have eased lending for small firms in recent months. The higher limit fits that trend.
Farm lending has grown too. Agriculture financing reached Rs1,329 billion in the year to October. For young farmers, loans under the scheme can support machinery, storage and small processing work as well as seed and fertiliser.
Frequently asked questions
What is the new youth loan limit?
The limit is now Rs25 million per borrower under the Prime Minister’s Youth Business and Agriculture Loan Schemes, up from Rs7.5 million. Loans are given in easy instalments.
Who can apply for a PM youth loan?
Any Pakistani citizen aged 18 to 45 can apply for a new or existing business or a viable farming activity. The minimum age was 21 until now, except for IT and e-commerce applicants.
What markup will I pay on a youth loan?
It depends on the tier. Loans of up to Rs5 lakh are interest free, Rs5 lakh to Rs15 lakh carries 5 per cent, Rs15 lakh to Rs75 lakh carries 7 per cent, and up to Rs2.5 crore carries 8 per cent.
How much of the loans is reserved for women?
Thirty per cent of loans under the schemes will go to women, under orders from the prime minister. Women made up about 11 per cent of borrowers earlier this year.
How do I apply for the PM Youth Loan Scheme?
Apply online through the Prime Minister’s Digital Youth Hub at pmyp.gov.pk. There is no closing date and no fee is mentioned. The bank checks each application under the scheme rules before approval.
