Govt raises youth loan limit to Rs25 million

PM directs 30% loan allocation for women as government earmarks Rs292 billion for youth financing in FY27 ISLAMABAD: Prime Minister Shehbaz Sharif has increased the maximum loan limit under the Prime Minister's Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million, lowered the minimum eligibility age from 21 to 18 years and directed that 30% of loans be reserved for women. The decisions were announced during a review meeting on Sunday, where the prime minister also instructed authorities to provide loans in easy instalments to help young people establish businesses, expand existing operations and undertake agricultural activities. According to a briefing presented at the meeting, 581,341 young people have received loans worth Rs313.9 billion since January 2023. Officials said the number of beneficiaries is ten times higher than in the preceding decade. The government has allocated Rs292 billion for FY2026-27 to provide financing to approximately 266,700 young people under the schemes. To facilitate applicants, the prime minister directed the Small and Medium Enterprises Development Authority (SMEDA) to provide business consultancy, technical assistance and start-up support to young entrepreneurs. He also ordered a nationwide awareness campaign to inform eligible applicants about the financing schemes and available business opportunities. The prime minister said the government aimed to expand employment opportunities and encourage youth participation in business and agriculture, with particular emphasis on women's financial independence. Finance Minister Muhammad Aurangzeb, Special Assistant to the Prime Minister on Youth Affairs Rana Mashhood Ahmed Khan and Special Assistant on Political Affairs Talha Burki attended the meeting.