The Government of Pakistan has expanded its Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS), introducing a new initiative that aims to provide soft loans for prospective overseas workers, students, freelancers, and young entrepreneurs. This expanded financial assistance is designed to address the needs of Pakistan’s youth, supporting them in areas such as training, travel, visa-related expenses, and the purchase of laptops to further their education and entrepreneurial efforts.
As part of this initiative, the government is offering loans of up to Rs. 1 million for individuals looking to work abroad. The loans will cover the costs of training, travel, visa-related expenses, and settlement costs in foreign countries. These loans will be available for a period of up to five years, with an 80:20 debt-to-equity ratio, meaning 80% of the loan amount will be covered by financing, while the remaining 20% will need to be contributed by the borrower. The bank rate will be KIBOR (Karachi Interbank Offered Rate) plus 3%, but the end-user rate will be zero percent, making it an extremely affordable option for overseas job seekers.
Applicants for this loan must be Pakistani citizens between the ages of 21 and 45 years and must possess a valid job offer or letter from an overseas employer. The job offer must be authenticated by the relevant Pakistan Mission abroad, a Community Welfare Attaché (CWA), an Overseas Employment Promoter (OEP), or the Protector of Emigrants Office. The applicant will also be required to provide documentation that shows the job or training program for which the loan is being requested, ensuring the funds are used appropriately.
In addition to supporting overseas workers, the government is also offering loans for the purchase of laptops, aimed at students, freelancers, and young entrepreneurs. Students aged between 18 and 30 years, enrolled in institutions recognized by the Higher Education Commission (HEC), are eligible for laptop loans. The amount of the loan depends on the type of laptop, with a maximum loan of Rs. 150,000 for basic laptops, Rs. 300,000 for mid-range laptops, and Rs. 450,000 for high-end laptops.
To facilitate the laptop loan program, a Memorandum of Understanding (MoU) will be signed between banks and universities, enabling students to apply for loans through the Prime Minister’s Youth Program (PMYP) portal. Banks will then provide laptops to the students, and the university will collect the loan installments along with the student’s fees. For freelancers and young entrepreneurs, the loan application will require a business plan outlining how the laptop will be used for business or professional purposes. Banks will assess the repayment capacity of the applicant, considering their income, and may also factor in the joint income of the applicant’s family. Personal guarantees from family members may be accepted as collateral for these loans.
The expansion of the PMYB&ALS is designed to help Pakistan’s youth gain the resources and skills needed to succeed in their education and careers. The government has also put in place a risk mitigation strategy, offering a 25% guarantee on the first loss of disbursed loans. This ensures that lenders are protected, while young people are given the financial support they need. The loans will be available through both commercial and Islamic banks, ensuring wide accessibility.
By making it easier for students to access laptops and for young professionals to pursue opportunities abroad, this initiative is intended to empower Pakistan’s youth, helping them gain the tools and skills required to contribute to the economy and to succeed in an increasingly globalized world. This expanded loan scheme is a step toward supporting the professional and educational growth of Pakistan’s young population and encouraging them to pursue their dreams without the burden of financial constraints.