Prime Minister Shehbaz Sharif has raised the maximum loan available 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 taken at a review meeting in Islamabad chaired by the prime minister to assess progress under the two schemes.

The government has allocated Rs292 billion for loans to young people in the current financial year. Officials told the meeting that an estimated 266,700 young people will receive loans worth that amount during 2026-27, with the financing provided in easy instalments so that recipients can start large-scale commercial and agricultural projects.

The prime minister also directed that 30 per cent of the loans be reserved for women, a step intended to support their economic independence and encourage more women to take part in business and farming. The schemes cover both business ventures and agricultural activity, and the higher limit is aimed at young people who want to move beyond small enterprises into larger projects.

Who attended the review meeting

Federal Minister for Finance Senator Muhammad Aurangzeb attended the meeting, along with the prime minister's Special Assistant on Youth Affairs, Rana Mashhood Ahmad Khan, and his Special Assistant on Political Affairs, Talha Burki. The meeting reviewed how loans have been provided to young people under the schemes and the progress made in their implementation.

Officials briefed the prime minister that the schemes have expanded sharply in recent years. The briefing said the increase in the loan limit and the lower age threshold were part of an economic package for young people, designed to widen access to finance and to draw more young people into business and agriculture.

Scale of the schemes so far

According to the briefing, 581,341 young people have received loans between January 2023 and November 2026. Officials said that figure represents ten times more progress than in the previous ten years, when far fewer young borrowers were reached.

The youth loan schemes have become one of the government's main routes for supporting self-employment. By raising the ceiling to Rs25 million and opening the schemes to 18-year-olds, the government is aiming to reach school and college leavers as well as young graduates who want to start a business or take up farming but lack the capital to do so.

The reservation of nearly a third of the loans for women is also a notable change. Women applying under the schemes will compete within a reserved share of the funding, which officials say should improve their access to credit for business and agricultural projects.

No date has been announced for when applications under the revised limits will open, and the government has not yet published updated application guidance. Young people interested in the schemes should watch for the official announcement before applying.