Prime Minister Shehbaz Sharif increased the individual loan limit under the Youth Business and Agriculture Loan Schemes from 7.5 million rupees to 25 million rupees.
Raising loan limits for young entrepreneurs
The Prime Minister announced the policy change while chairing a meeting on Sunday in Islamabad, according to the Prime Minister’s Office. Officials stated during the session that the program provides loans through easy installments to encourage young people to enter business and agricultural ventures.
The revised financing tier increases the maximum personal borrowing threshold. The new cap stands at approximately $90,364, up from about $27,109 under the previous guidelines.
Did You Know? Agriculture accounts for over 20 percent of Pakistan’s gross domestic product and employs a large portion of the nation’s workforce.
Allocations and targets for the financial year
A total of 292 billion rupees has been allocated in the current financial year to fund the youth initiatives. Finance Minister Muhammad Aurangzeb and his team put in place effective arrangements to provide financial support to young people for business and agricultural activities.
During the 2026–27 financial year, an estimated 266,700 young applicants are expected to receive funding from the allocated pool. Officials briefed the meeting that 581,341 beneficiaries have received a combined 313.9 billion rupees in disbursements since January 2023.
Expanding access for women and younger applicants
The Prime Minister directed that 30 percent of the loan program be reserved for women to promote economic independence. The minimum age limit for applicants drops from 21 to 18 years.
The Prime Minister instructed the Small and Medium Enterprises Development Authority to offer comprehensive support to young applicants. This assistance includes business consultancy, technical support, and guidance on launching new enterprises.
Common questions about new loan limits and eligibility
What is the new maximum loan limit for individuals?
The maximum individual loan limit under the Youth Business and Agriculture Loan Schemes has been increased to 25 million rupees.
Who is eligible to apply for these loans?
Young people starting at 18 years of age are eligible to apply, with 30 percent of the total loans specifically reserved for women.
What agency provides technical assistance to applicants?
The Small and Medium Enterprises Development Authority provides support, business consultancy, and technical assistance to young applicants under the schemes.
How will the expanded loan limits and lower age requirements reshape youth employment and agricultural production across the country in the coming fiscal year?
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