Prime Minister Shehbaz Sharif has increased the maximum loan limit under the Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million, expanding the financing available to young people interested in starting or developing businesses and pursuing agricultural activities. The government has also introduced changes to eligibility requirements, lowering the minimum age from 21 to 18 years and directing that 30% of loans under both schemes be reserved for women. The decisions were announced during a meeting chaired by the prime minister in Islamabad to review the progress and implementation of the youth financing initiatives.
During the meeting, Shehbaz Sharif described young people as an important national asset and emphasised the government’s commitment to supporting their potential through employment opportunities and access to financial resources. He said the revised loan limit would provide greater financing capacity to applicants seeking to establish businesses or expand existing activities. Lowering the minimum eligibility age is also expected to allow younger applicants to enter business and agriculture at an earlier stage. The 30% allocation for women is intended to increase their participation in economic activities by improving access to financing under the two government-backed schemes.
The prime minister directed the relevant authorities to launch an awareness campaign covering the youth loan schemes and other government initiatives. The campaign is intended to inform more young people about available financing opportunities, eligibility requirements and support facilities. He stressed that information about these programmes should reach a wider segment of the youth population so that eligible applicants can benefit. The government aims to encourage young people to use the available facilities to establish businesses, pursue agricultural projects and explore employment-generating activities.
Shehbaz Sharif also instructed the Small and Medium Enterprises Development Authority (SMEDA) to provide comprehensive assistance to borrowers under the schemes. The support is expected to include business consultancy, guidance and technical assistance to help applicants develop and manage their ventures. The authority’s role will extend beyond facilitating access to loans by helping young borrowers understand business requirements and address technical challenges. Such assistance is particularly relevant for applicants entering the business sector for the first time, as they may require guidance in preparing business plans, identifying opportunities and managing their operations.
The meeting was informed that Rs292 billion has been allocated for youth lending under the schemes during the current financial year. Participants were also briefed that loans worth Rs313.9 billion have been disbursed to young people since January 2023. The meeting discussed additional measures to empower youth, create business opportunities and increase their participation in agriculture. With the higher financing ceiling, reduced minimum age and dedicated allocation for women, the government has revised the programme’s key terms to broaden access to financial support. The planned awareness campaign and SMEDA’s advisory assistance are also expected to help eligible young people understand and make use of the available financing facilities.
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