14 April 2024

Youth Business and Agriculture Loan Scheme 2023

Prime Minister Shehbaz Sharif has re-launched the PM Youth Business and Agriculture Loan Scheme 2023 (PMYB&ALS) as part of the Prime Minister’s Youth Initiative to encourage youth to become self-employed and start businesses despite the current economic climate.

Other names for the Youth Business and Agricultural Loan Program 2023 include the Prime Minister’s Business Loan Scheme 2023 and the Prime Minister’s Farm Loan Scheme 2023.
Loan Program to Support Young Farmers and Entrepreneurs (2023)

People between the ages of 21 and 45 are eligible for loans of up to Rs. 7.5 million via the PM Youth Business and Agricultural Loan Scheme 2023 (PMYB&ALS). In addition, for companies involved in IT and E-Commerce, the government has imposed a minimum age requirement of 18 years old.

Instead of encouraging children to actively pursue employment, these loans will foster an atmosphere in which new jobs may be created. Moreover, the scheme’s agricultural loans would enable young people in rural areas to introduce new techniques to farming.

Women are eligible for a 25% loan quota under the PM Youth Business and Agricultural Loan Program 2023, which is being heralded as a watershed moment in the economic empowerment of young people in the nation.

This plan, which provides loans of up to Rs 7.5 million and includes a 25% quota for women, is a watershed moment in the economic empowerment of the country’s young.

Youth Business and Agriculture Loan Scheme

Financing Program for Young Entrepreneurs and Farmers Announced by the Prime Minister (PMYB&ALS)
The current administration, led by Prime Minister Shehbaz Sharif, has made significant changes to the Prime Minister’s Kamyab Jawan Youth Enterprise Program (PMJK-YES), which was first implemented under the term of previous Prime Minister Imran Khan.

To help young people in Pakistan get their businesses off the ground, the government, led by Prime Minister Shehbaz Sharif, has relaunched the Prime Minister’s Youth Business and Agricultural Credit Program.

Online Application for the Youth PM Agriculture and Business Loan Scheme 2023

Pakistani government tweet from January 24, 2023

Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) is the new name given by the current administration, and the following are the main tenets that have been authorized by the Government of Pakistan.

Qualifications Required:

  • Entrepreneurial-minded Pakistani nationals between the ages of 21 and 45 who have a valid CNIC are welcome to apply.
  • The minimum age to work in an IT/E-Commerce related firm will be 18 and a high school diploma or its foreign equivalent would be needed.
  • The aforementioned stipulation about maximum age applies to single owners and persons. While doing business as a partnership or corporation, just one of the owners, partners, or directors has to meet the aforementioned requirements.
  • Small and medium-sized firms (both new and established) operated by young people in the aforementioned age ranges are also welcome to apply.
  • SBP’s “Indicative Credit Limitations & Eligible Products for Agricultural Financing 2020” specifies how farmers should be categorized if they want to make use of agricultural loans.

Total Size of the Loan

The sizes of loans fall into one of three categories.

  1. Tier 1 (T1): About Rs 500,000
  2. Tier 2 (T2): More than Rs. 500,000 and less than Rs. 1,550,000
  3. Tier 3 (T3): Above R. 1.5 m and under R. 7.5 m

Loan Term

  1. Commercial leasing and financing of equipment and locally built automobiles, as well as term loans and working capital loans structured via Murabaha.
  2. There is a limit of one car per borrower. A borrower who operates a restaurant franchise or distributes food may be eligible for several vehicle loans.
  3. Civil Works may access up to 65% of the available funds.
  4. Loans for agricultural production and expansion are welcome.
  5. Periodic Payments on a Loan
  6. Here are the loan terms available to you under the Prime Minister’s (PM) Youth Business & Agricultural Loan Program, formerly known as the PM’s Kamyab Jawan Youth Entrepreneurship Scheme.

T1 – Up to 3 years with equal monthly payments required. Crop loans, on the other hand, will have maturities of up to a year and require repayment in a single lump amount on or before the loan’s scheduled maturity date.

Long-term/development loans (T2 and T3) may be for up to 8 years, with a grace period of up to 1 year.
Tenor will be up to 5 years for T2 and T3 working capital/production loans and Murabaha. Meanwhile, banks will have the option to provide working capital/production loans with a 2-year grace period during which just the markup is due, followed by a 3-year payback term during which both the principle and markup are due.

Equity Debt Ratio

For startups, the debt-to-equity ratio in T1 and T2 is 90:10, while in T3 it’s 80:20. When the loan is approved, the borrower will be expected to make a monetary or non-movable asset equity contribution. There is no debt-to-equity ratio at any of the existing company stages.

Lending Institutional Rate

  • T1 – KIBOR+9%, including a 1% margin for wholesale lenders and an 8% margin for Microfinance Banks/Microfinance Institutions.
  • T2 and T3 – 3% KIBOR
  • The markup subsidy will be determined based on the KIBOR offer over six months.

Client Rating

  • T1: 0%
  • T2: 5%
  • T3: 7%
  • Other names for the Youth Business and Agricultural Loan Program 2023 include the Prime Minister’s Business Loan Scheme 2023 and the Prime Minister’s Farm Loan Scheme 2023.
  • Facebook page of the Pakistani government
  • Prerequisites for Safety

The following will serve as the security arrangement:

  1. Clean (T1) (secured only by the personal guarantee of the borrower).
  2. Moreover, MFBs/MFIs must follow the norms and regulations set out by SECP/SBP.
  3. Clean (T-2) (secured only by the personal guarantee of the borrower).
  4. According to the bank’s T3 policy.
  5. Collateral will consist of the vehicle(s) used to secure the T1, T2, and/or T3 loans.

Contingency Planning

The government will be responsible for any credit losses (principal only) on the bank’s loan portfolio.

  • T1: Up to 50%, with wholesale lenders contributing 40% on a pari-passu basis and microfinance institutions contributing 10% on a first-loss basis.
  • T2: Up to 25% in case of first loss.
  • T3: Up to 10% in the event of a first loss
  • Per-Borrower Loan Volume

Under the total maximum financing limit of Rs 7.5 million, a client may avail themselves of a maximum of two loans (one long-term and one short-term).

Industries and Items

Any industry or product. Apart from crop production, cattle, poultry, fishing, dairy, etc. are also acceptable subsectors of agriculture.

Agency for Execution (EA)

We encourage all financial institutions, both conventional and Islamic, to join us.

As wholesale lenders, banks and DFIs are actively seeking to provide MFBs and MFIs with funds for further T1 lending. Only MFBs/MFIs chosen by the individual wholesale lenders will handle and distribute loan applications under T1.

Emphasis on Females

The Prime Minister’s (PM) Youth Business & Agriculture Loan Scheme (PMYB&ALS) specifies that 25% of loans made under the scheme would be made to women in the agricultural sector.

Budgetary Allotment

According to SBP’s estimations, the Finance Division would include funding for the updated PM’s Kamyab Jawan Youth Enterprise Program (YES) in the annual budget. The SBP will submit consolidated claims from all participating banks quarterly for payment.

The Prime Minister’s Youth Portal Web Application

The PM Youth Program (PMYP) Portal requires online applications for efficient tracking. The webpage will provide the Form in both English and Urdu.

The portal’s goal is to serve as a consolidated hub from which interested parties may submit applications to the appropriate financial institutions. Ministry of Information and Communications Technology, which houses the National IT Board, will manage the platform.

Individuals may apply for loans via the site, banks can receive them, SMEDA can provide assistance where it’s needed, and the PM Youth Office can get data for monitoring reasons. Nevertheless, only approved parties will have access to the service.

The Prime Minister's Youth Portal Web Application

To further guarantee that the online portal is utilized by the appropriate parties for its intended purpose and that any illegal use of the online portal is promptly recognized, an annual external audit will be done by qualified IT auditors.

Processing / Turnaround Time

The application form will specify the maximum 45-day processing time. The NADRA online CNIC verification charge and the form processing cost both total Rs. 100/- and are non-refundable.


To keep an eye on the subsidy budget and determine whether action is necessary, SBP will work with the Finance Division and financial institutions to develop a system.

Every quarter, SBP will update its website with consolidated information regarding the loans made available under the plan.

Dispersal Over Space and Time

Pakistan as a whole will have access to the updated Prime Minister’s (PM’s) Kamyab Jawan Youth Enterprise Scheme (YES) or PM’s Youth Business & Agricultural Loan Scheme (PMYB&ALS).

In the province of Balochistan, each administrative division will have an official NBP branch.

Taking Extra Steps

The following are extra precautions that Executing Agencies should take:

It is important to establish and use criteria for measuring entrepreneurial potential.
In the event of an established firm seeking financing, an independent verification process of sufficient strength may be implemented.

  • A reliable system for tracking the repayment of startup loans should be created and put into place.
  • To assess the scheme’s efficacy, especially regarding the number of direct employment generated by the benefactors, a thorough monitoring and evaluation system may be constructed.
  • For purposes of auditing, evaluating, and monitoring the scheme, the Prime Minister (Youth Affairs) Office may contract with an outside organization.
  • The SBP has urged the banks, DFIs, and MFBs to prepare their infrastructures for the smooth rollout of this program and the prevention of its abuse.

When the Prime Minister’s Office formally launches the initiative, qualified borrowers will be able to apply for loans through the PM Youth Portal.


⁽๏⁾ ͟͟͞͞𝐀𝐢𝐬𝐞 𝐦𝐚𝐭 ٭𝐝𝐞𝐤𝐡 𝐥𝐨𝐰𝐝𝐞⸙ – ︻ㅸ⹀⸺𝐩𝐲𝐚𝐫 𝐡𝐨𝐣𝐚𝐲𝐞𝐠𝐚 ❯⸙ ༑輪†⃝⃞⸙-

Masroor Anwar

I am Masroor Anwar, an experienced SEO expert and the owner of Techinblog. With a wealth of experience, I specialize in optimizing content to enhance online visibility and reach. You can reach me at entirestech@gmail.com. Through Techinblog, I strive to share articles that offer valuable insights and assistance to people, catering to their diverse needs and interests.

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