Pakistan allocates Rs292.5 billion for PM Youth Loan Scheme in 2026–27

• The government has earmarked Rs292.5 billion for youth business and agriculture loans in fiscal year 2026–27.
• The scheme offers four loan tiers, with markup rates ranging from zero to 8% and financing of up to Rs25 million.
• Young Pakistanis seeking employment overseas can apply for a separate interest-free loan of up to Rs1 million.

The federal government has allocated Rs292.5 billion for the Prime Minister’s Youth Business and Agriculture Loan Scheme in fiscal year 2026–27. The programme provides financing on subsidised terms to young Pakistanis looking to start or expand small and medium-sized businesses or fund agricultural activities.

According to the Ministry of Information and Broadcasting, Rs314 billion in loans was disbursed to 581,000 young people between January 2023 and September 2026.

Under the four-tier structure, loans of up to Rs500,000 carry zero markup. The second tier offers financing above Rs500,000 and up to Rs1.5 million at 5% markup, while the third covers amounts above Rs1.5 million and up to Rs7.5 million at 7%. The fourth tier offers loans of up to Rs25 million at 8% markup.

The scheme also offers interest-free loans of up to Rs1 million to young Pakistanis seeking employment abroad. This financing is separate from the four tiers for business and agriculture.

Pakistani citizens aged 21 to 45 can apply for business or agricultural financing. For applicants seeking funding for information technology or e-commerce businesses, the minimum age is 18. Financing is available for new and existing businesses as well as agricultural activities.

Applications can be submitted online through the Prime Minister’s Digital Youth Hub at pmyp.gov.pk. Loan approval is subject to the scheme’s rules and the participating bank’s assessment.