PM Youth Loan Limit Raised to Rs25 Million for Entrepreneurs
The government of Pakistan has significantly increased the maximum loan limit available to young entrepreneurs through the Prime Minister’s Youth Business and Agriculture Loan Schemes, elevating the ceiling from Rs 7.5 million to Rs 25 million. This change aims to empower more ambitious startups and business ventures by providing access to larger capital amounts.
Expanded Loan Opportunities and Lowered Age Eligibility
In a recent announcement, Prime Minister Shehbaz Sharif revealed not only the tripling of the loan limit but also the lowering of the minimum age requirement for applicants. Now, individuals as young as 18 years old are eligible to apply, compared to the previous minimum age of 21. This adjustment aligns with Pakistan’s youthful demographic, where about 64% of the population is under the age of 30.
The older Rs 7.5 million cap tended to restrict young business owners to smaller scale enterprises such as shops or service operations. The expanded limit of Rs 25 million now facilitates ventures in areas like light manufacturing, technology startups, agriculture, and other capital-intensive sectors, opening up wider avenues for economic engagement.
Promoting Female Entrepreneurs and Support Services
The government has also committed to directing 30% of the total loans under these schemes toward women entrepreneurs, aiming to reduce gender disparities in business financing. Female entrepreneurs in Pakistan often face significant challenges in securing formal credit due to cultural and financial obstacles.
Alongside the increased funding, the Small and Medium Enterprises Development Authority (SMEDA) has been assigned to provide business counseling, technical guidance, and assistance for startups receiving these loans. Additionally, a nationwide awareness campaign has been initiated to ensure that eligible youth across the country are informed about the program.
The Scale and Impact of the PM Youth Loan Scheme
Since January 2023, over half a million young Pakistanis (581,341 individuals) have benefited from these loan schemes, accessing a total of Rs 313.9 billion. The number of beneficiaries in this short period exceeds the previous decade’s total by ten times, signaling the strong demand for such financial support.
The government has earmarked Rs 292 billion for the youth loan program for the ongoing fiscal year, targeting more than 266,700 young people during FY2026-27.
Access to enhanced business credit is pertinent for Pakistan’s start-up scene, especially given that freelancers have generated record revenues such as $1.76 billion in FY2025-26. Easier financing options could encourage individuals to transition from solo freelancing ventures to fully-fledged companies employing people and investing in infrastructure.
PM Shehbaz Sharif described the initiative as a step that will “unlock new horizons” for Pakistan’s youth by enabling them to pursue larger business opportunities and contribute to economic growth.
