Pakistan PM Raises Youth Business and Agriculture Loan Limit to $90,364 to Spur Economic Growth

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday announced a significant increase in the government’s loan limit for young entrepreneurs and farmers, raising the maximum individual cap from Rs7.5 million ($27,109) to Rs25 million ($90,364), according to the Prime Minister’s Office (PMO).

The initiative aims to bolster youth engagement in key economic sectors, particularly agriculture, which contributes over 20 percent to Pakistan’s gross domestic product (GDP) and sustains a massive portion of the national workforce. Under the Prime Minister’s Youth Business Loan Scheme and Prime Minister’s Youth Agriculture Loan Scheme, the government provides annual financial support to help young citizens launch and expand their ventures.

During a high-level review meeting, Sharif emphasized the importance of empowering young people and expanding economic opportunities. He announced that the maximum individual loan limit has been raised to Rs25 million, with loans structured to be repaid through easy installments.

The Prime Minister’s Office stated that a total budget of Rs292 billion ($1.055 billion) has been allocated for youth loans this year. To further promote gender inclusivity, the premier directed that 30 percent of the loans under these schemes be reserved specifically for women, fostering their economic independence and business leadership.

Additionally, the minimum age for loan eligibility has been lowered from 21 to 18 years, allowing young individuals to access capital earlier and initiate agricultural or business projects at the start of their careers. The Small and Medium Enterprises Development Authority (SMEDA) has been instructed to offer full assistance to applicants, including startup guidance, business consultancy, and technical support.

Officials revealed remarkable progress since the program’s revitalization in January 2023, with 581,341 young people securing loans worth a cumulative Rs313.9 billion ($1.135 billion)—a tenfold increase compared to the total beneficiaries over the preceding decade. Looking ahead, during the fiscal year 2026–27, authorities project that approximately 266,700 young entrepreneurs will benefit from loans totaling Rs292 billion ($1.055 billion).

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