ISLAMABAD: The federal cabinet and the Economic Coordination Committee have sanctioned a new tier-4 category for the Prime Minister’s Youth Business and Agriculture Loan Scheme,scaling up the upper loan limit to Rs25 million.
Making the announcement, Chairman of the Prime Minister’s Youth Programme Rana Mashood Ahmad Khan stated that the scheme catered to youth aged 21 to 45, with the age floor reduced to 18 years for applicants in the IT and e-commerce domains.
Financial data accompanying the policy update revealed a highly encouraging repayment performance, with over 99pc of the disbursed youth loans successfully recovered so far.
According to the new policy, the tier-4 offers loans above Rs7.5 million and up to Rs25 million at 8pc markup, for up to eight years. Until now, subsidised loans were capped at Rs7.5 million, leaving successful young businesses with no room to grow.
Tier-4 will support agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports.The scheme is open to new ventures and existing businesses, in business and agriculture, with Islamic financing available.
The government plans to finance about 266,700 young Pakistanis, creating about 835,000 jobs. Funds will be split equally between agriculture and small businesses, and about three in four beneficiaries will receive interest-free tier-1 loans.
Tier-1 offers loans up to Rs0.5 million at zero per cent, tier-2 offers Rs0.5 million to Rs1.5 million at 5pc, tier-3 offers Rs1.5 million to Rs7.5 million at 7pc and the new tier-4 offers Rs7.5 million to Rs25 million at 8pc. Tier-5 provides interest-free loans for laptops, up to Rs0.45 million and for prospective overseas workers up to Rs1 million.
Young people can apply through the Prime Minister’s Digital Youth Hub at www.pmyp.gov.pk or the PMYP mobile app on Google Play Store and Apple App Store. The chairman stressed that no agent or recommendation is needed, as banks decide every application on merit.
“To every young Pakistani with an idea: the door is open. Apply,” he said.
Published in Dawn, November 11th, 2026
