Prime Minister Shehbaz Sharif has raised the maximum loan under the Prime Minister's Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million, and lowered the minimum age for applicants from 21 to 18 years.

The decisions were announced on Sunday, 8 November, when the prime minister chaired a review meeting on the schemes. Finance Minister Senator Muhammad Aurangzeb, the prime minister's Special Assistant on Youth Affairs Rana Mashhood Ahmad Khan and Special Assistant on Political Affairs Talha Barki attended the meeting.

What has changed

Under the revised scheme, eligible young people can now seek financing of up to Rs25 million, compared with the previous ceiling of Rs7.5 million, with repayment in easy instalments. The prime minister also directed that the minimum age for applicants be reduced from 21 to 18 years, so young people can start businesses and take part in agricultural ventures earlier, alongside or immediately after their education.

Thirty per cent of the loans under the programme are to be reserved for women, to encourage their participation in business and farming and to support their financial independence.

Rs292 billion set aside this year

For the current financial year 2026-27, the government has allocated Rs292 billion for the schemes, with an estimated 266,700 young people expected to receive financing. The Small and Medium Enterprises Development Authority (SMEDA) will support implementation of the schemes.

The prime minister said the schemes were meant to help young people launch large-scale commercial and agricultural projects, and directed officials to make the process simple and accessible.

What applicants should check first

One detail applicants should note: the new terms for loans above Rs7.5 million, including the markup structure, have not yet been formally notified by the State Bank of Pakistan. Until that notification comes, banks are applying the existing tiers: interest-free loans up to Rs0.5 million, 5 per cent markup up to Rs1.5 million, and 7 per cent up to Rs7.5 million.

At the review meeting, officials briefed the prime minister on the performance of the schemes and their contribution to business development and agricultural activity across the country. The prime minister directed that the expanded financing should reach young entrepreneurs in both cities and rural areas.

Applications are made online through the official portal, pmybals.pmyp.gov.pk. Applicants should confirm the current limit, age requirement and markup with their chosen bank before applying, as the portal and banks may take time to reflect the latest changes.

The higher limit has been announced, but the date from which the official portal and banks apply the new limit and age, and what security or guarantee larger loans will need, have not yet been announced.