Pakistan Raises Youth Loan Limit to Rs25 Million: What Young Borrowers Need to Know

Young Pakistanis who want to start a business or a farm can now borrow much more from the government. 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 — more than three times the old limit.

The decision was announced on Sunday, 8 November 2026, at a review meeting in Islamabad chaired by the prime minister. Along with the bigger limit, the government has cut the minimum age for applicants from 21 to 18, reserved 30 per cent of the loans for women, and set aside Rs292 billion for youth loans in the current financial year.

For a young person with a business idea but no capital, this is one of the biggest changes to the scheme since it began. Here is what changed, who can apply, and how the loans work.

What changed in the youth loan scheme

The headline change is the loan limit. Until now, the most a young person could borrow under the Prime Minister’s Youth Business and Agriculture Loan Schemes was Rs7.5 million (about $27,109). That ceiling has now risen to Rs25 million (about $90,364), and the loans will be given in easy instalments, according to the Prime Minister’s Office.

The government has also put serious money behind the announcement. A total of Rs292 billion (about $1.055 billion) has been allocated this year for loans to young people under the two schemes. During the 2026-27 financial year, an estimated 266,700 young people are expected to receive loans worth that amount, officials told the meeting.

Three other decisions came out of the same meeting:

• The minimum age drops to 18. Young people can now apply at 18 instead of waiting until 21, so school and college leavers can start a business or take up farming earlier.
• 30 per cent of loans are reserved for women. The prime minister directed that nearly a third of the loans go to women, to help them become economically independent and take part in business and farming.
• More help to apply. The Small and Medium Enterprises Development Authority (SMEDA) has been told to give young applicants all possible help, including guidance on starting a business, business consultancy and technical support. The prime minister also ordered a countrywide awareness campaign so more young people learn about the schemes and how to use them.

The meeting was attended by Finance Minister Muhammad Aurangzeb, Special Assistant to the Prime Minister on Youth Affairs Rana Mashhood Ahmad Khan, and Special Assistant to the Prime Minister on Political Affairs Talha Barqi. The prime minister praised the finance minister and his team for putting effective arrangements in place to support young people.

The four loan tiers: how much you can borrow, and at what cost

The scheme is organised into four tiers, based on how much you borrow. The markup — the extra amount you pay on top of the loan — rises with the size of the loan. The details come from the government’s official advertisement for the 2026-27 scheme, issued by the Ministry of Information and Broadcasting.

Tier 1: up to Rs500,000 — zero markup. The smallest loans are completely interest-free. These suit a very small business, a home-based service, or a small farming need, such as seeds, fertiliser or a few animals.

Tier 2: above Rs500,000 up to Rs1.5 million — 5 per cent markup. This tier suits a small shop, a food stall, a tailoring unit or a small farm that needs equipment.

Tier 3: above Rs1.5 million up to Rs7.5 million — 7 per cent markup. This is for established small businesses that want to expand, or for larger agriculture projects such as dairy, poultry or fish farming.

Tier 4: above Rs7.5 million up to Rs25 million — 8 per cent markup. This is the new top tier, created by the Rs25 million ceiling. It is meant for bigger projects — a medium-sized factory, a fleet of commercial vehicles, a large farm or an agri-business that needs serious capital.

Long-term loans can run for up to eight years, while working capital loans — money used to run the day-to-day business, such as buying stock — run for up to five years. Some tiers include a grace period of up to one year, which means you do not start repaying the loan straight away.

The exact markup and repayment terms for the new top tier will be confirmed by the partner banks when applications open, so check the official portal before you apply.

Who can apply

The scheme is open to Pakistani citizens who want to start a new business or expand an existing one, or who want to take up agriculture. With the minimum age now lowered to 18, the scheme covers young people from 18 to 45 years old.

You do not need a job, a degree or political connections to apply. What you do need is a valid CNIC, a business plan that explains what you will do with the money, and two references who are not blood relatives. Government employees are not eligible.

The loans cover a wide range of activities. On the business side, that includes retail shops, services, manufacturing, IT and e-commerce. On the agriculture side, the scheme covers both crop and non-crop farming, including livestock, poultry, fishery and dairy. Financing can be used for working capital, machinery, leasing equipment and commercial vehicles.

Applications are submitted online only, through the official portal at pmyp.gov.pk. Once submitted, your application is sent to a partner bank for processing. Around 15 banks take part in the scheme, including HBL, NBP, MCB, Bank Alfalah and UBL.

There is no application fee, and no agent or middleman can approve your loan or speed it up. The government has warned repeatedly that anyone asking for money to process an application is running a scam — apply only through the official portal.

How to apply, step by step

If you want to apply, here is the process in plain terms:

1. Go to the official portal. Open pmyp.gov.pk and choose the Prime Minister’s Youth Loan Scheme for Business and Agriculture. Make sure the address ends in .gov.pk before you enter any personal information.
2. Register with your CNIC. Enter your 13-digit CNIC number, its issue date and your date of birth. The system checks your details against NADRA records.
3. Choose your tier and bank. Pick the loan tier that matches the amount you need, and choose a partner bank from the list.
4. Fill in your business plan. Describe your business or farming activity, how much money you need, and how you plan to earn enough to repay it. Keep it simple and honest — a clear, realistic plan matters more than a fancy one.
5. Submit and wait for the bank. After you submit, the bank checks and verifies your application. You will usually need to visit a branch of the bank you chose, where the final assessment happens. Completing the online form alone does not guarantee a loan.

The scheme runs in phases, and there is no fixed closing date printed in the official advertisement for 2026-27. That means applications stay open, but it is best to apply early rather than wait.

30 per cent of loans reserved for women

One of the most important parts of the announcement is the reservation for women. The prime minister directed that 30 per cent of the loans under the programme be set aside for women, to promote their economic independence and give them greater opportunities to take part in business.

This matters because women in Pakistan face bigger barriers than men when it comes to borrowing money. Many do not own property in their own name, which banks often ask for as security, and many have never dealt with a bank at all. A reserved share means women applicants are not competing only against men for the same pot of money.

The reservation also comes with practical support. SMEDA has been told to help young applicants with guidance and consultancy, and the government has said women-led businesses will get help to prepare their applications. In the past, the scheme has offered reduced markup for women in some tiers, so women applicants should ask their chosen bank what terms apply to them.

What the scheme has delivered so far

The youth loan scheme is not new. It began as the Kamyab Jawan programme and was renamed the Prime Minister’s Youth Business and Agriculture Loan Scheme in December 2022. Since January 2023, it has reached a large number of young people.

According to the briefing given at Sunday’s meeting, 581,341 young people have received loans since January 2023 — ten times more than the number of people who benefited in the ten years before that. Loans worth Rs313.9 billion (about $1.135 billion) have been disbursed in that period.

Those numbers explain why the government is raising the limit now. The scheme has shown it can reach hundreds of thousands of people, and the prime minister’s team believes bigger loans will let borrowers build bigger businesses — the kind that hire other people, not just the borrower.

Why this matters for Pakistan

Pakistan has one of the youngest populations in the world, and every year hundreds of thousands of young people enter the job market. There are not enough formal jobs for all of them, so many either work informally, depend on family support, or try to go abroad.

A loan scheme cannot fix that on its own, but it can give a young person a way to create their own job — and, if the business grows, jobs for others too. That is the idea behind the scheme: instead of waiting for a job, a young person borrows, starts something small, and builds it up.

Agriculture is a big part of the story. Farming accounts for more than 20 per cent of Pakistan’s economy and employs a large share of the workforce. But many young farmers cannot afford a tractor, a tube well, better seed or a cold-storage unit. A loan of Rs25 million can pay for those things, and for a young person in a village, that can be the difference between leaving farming and making it pay.

The timing also matters. Pakistan’s economy is still recovering, and the government has been pushing small businesses as a way to create work. The auto policy announced in November aims to make cars cheaper and push electric vehicles, which will also need new workshops, charging points and small suppliers — the kind of businesses a youth loan could help start. And with COP31 opening in Antalya on the same day as this announcement, climate-resilient farming — such as drip irrigation and solar tube wells — is likely to be one of the areas where agriculture loans are most useful.

What to watch

A bigger loan limit is good news, but a few things will decide whether it actually helps young people:

• Bank approvals. Banks decide who gets a loan, and they will still check your business plan, your credit history and your ability to repay. A higher limit does not mean everyone who applies will be approved.
• Awareness. Many young people, especially in rural areas, do not know the scheme exists or do not trust government programmes. The countrywide awareness campaign the prime minister ordered will need to reach villages, not just cities.
• The new top tier. The 8 per cent markup on the biggest loans is higher than the lower tiers, and the exact terms are still to be confirmed by the banks. Borrowers should compare the cost carefully before taking a large loan.
• Repayment. A loan is not a grant. Borrowers must repay it in instalments, and missing payments can damage their credit record. SMEDA’s guidance is meant to help, but the responsibility to repay stays with the borrower.

Frequently asked questions

What is the maximum loan under the PM Youth Loan Scheme now?

Rs25 million per person, raised from Rs7.5 million on 8 November 2026. The loans are given in easy instalments.

What is the minimum age to apply?

18 years. The prime minister has directed that the minimum age be reduced from 21 to 18.

How much money has the government set aside for youth loans this year?

Rs292 billion for the 2026-27 financial year. An estimated 266,700 young people are expected to receive loans.

What are the markup rates?

Tier 1 (up to Rs500,000) is interest-free at 0 per cent. Tier 2 (Rs500,000 to Rs1.5 million) is 5 per cent. Tier 3 (Rs1.5 million to Rs7.5 million) is 7 per cent. Tier 4 (up to Rs25 million) is 8 per cent.

How do I apply for the PM Youth Loan?

Apply online only at pmyp.gov.pk. Register with your CNIC, choose your loan tier and bank, fill in your business plan, and submit. The bank will then verify your application, and you will usually need to visit a branch.

Is there any fee to apply?

No. There is no application fee, and no agent or middleman is authorised to take money for this scheme. Apply only through the official portal.

Are women given any special share?

Yes. The prime minister has directed that 30 per cent of the loans be reserved for women, to support their economic independence and participation in business and agriculture.

Conclusion

Raising the youth loan limit from Rs7.5 million to Rs25 million is a big change, and it comes with other useful ones: the minimum age is now 18, nearly a third of the loans are reserved for women, and Rs292 billion has been set aside for this financial year.

The scheme has already reached more than 580,000 young people since January 2023, disbursing nearly Rs314 billion. Whether the bigger limit helps more of them build lasting businesses will depend on how easily they can apply, how fairly the banks decide, and how well the loans are used.

For a young Pakistani with a real business idea and a realistic plan, the door is now wider open than it has ever been. The next step is simple: check the official portal at pmyp.gov.pk, prepare your plan, and apply.

Sources

• The Express Tribune, “PM Shehbaz raises youth loan limit to Rs25m under business, agriculture schemes”, 8 November 2026: https://tribune.com.pk/story/2639308/pm-shehbaz-raises-youth-loan-limit-to-rs25m-under-business-agriculture-schemes
• Arab News Pakistan, “Pakistan PM increases youth individual business, agriculture loan limit to $90,364”, 8 November 2026: https://www.arabnews.pk/pakistan/pakistan-pm-increases-youth-individual-business-agriculture-loan-limit-to-90364-3006476
• Pakistan Today, “PM raises youth loan ceiling to Rs25m, lowers eligibility age to 18”, 9 November 2026: https://www.pakistantoday.com.pk/2026/11/09/pm-raises-youth-loan-ceiling-to-rs25m-lowers-eligibility-age-to-18
• Parho Pakistan, “PM Youth Loan Scheme 2026-27 Apply Online at pmyp.gov.pk” (official advertisement, Ministry of Information and Broadcasting, PID No. (I) 4305-D/26 — loan tiers and markup rates): https://parhopak.com/pm-youth-loan-scheme-2026-27/
• PM Youth Programme official portal: https://pmyp.gov.pk

This article is for general information and education only. It is not legal or financial advice.