Islamabad: The Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYBALS) will now offer loans of up to Rs 25 million, a significant increase from the previous cap of Rs 7.5 million, as announced by Rana Mashood Ahmad Khan, Chairman of the Prime Minister’s Youth Programme. The decision, approved by the Economic Coordination Committee and ratified by the Federal Cabinet, aims to support young entrepreneurs in expanding their businesses into small and medium enterprises.

According to the Press Information Department, the new Tier-4 loans will be available at an 8% markup for up to eight years and are designed to support sectors such as agro-processing, solar energy, and manufacturing. The scheme targets young Pakistanis aged 21 to 45, with special provisions for those as young as 18 in the IT and e-commerce sectors. The initiative also includes Islamic financing options and aims to create approximately 835,000 jobs by financing 266,700 young Pakistanis during the fiscal year 2026-27.

The government’s strategy involves lowering the banks’ margin on Tier-3 and Tier-4 loans, allowing the same rates for borrowers while reducing costs. The target disbursement for the fiscal year is set at Rs 292.5 billion, with funds equally allocated between agriculture and small businesses. Impressively, more than 99% of the youth loans have been repaid, indicating high credibility among young entrepreneurs, according to the Chairman.

Since the scheme’s reconfiguration in January 2023, 581,341 young entrepreneurs have benefitted, resulting in 1.82 million jobs. The program has expanded significantly, with annual lending rising from under 17,000 to about 170,000 young borrowers. Since 2013, the scheme has reached a total of 638,081 borrowers, creating nearly 2 million jobs, with a notable portion of loans going to women and those in agriculture.

The PMYBALS offers multiple loan tiers, including interest-free options. Applications can be submitted through the Prime Minister’s Digital Youth Hub or the PMYP mobile app, with decisions made based on merit. The Chairman emphasized the accessibility of the scheme, encouraging young people with entrepreneurial ideas to apply without needing intermediaries or recommendations.