PM increases youth loan limit to Rs 1.5 million for SMEs to boost entrepreneurship

Islamabad: Prime Minister Shehbaz Sharif on Thursday directed a significant increase in the loan amount available under the PM’s Youth Programme for Small and Medium Enterprises (SMEs), raising it from Rs500,000 to Rs1.5 million. The Prime Minister also instructed the preparation of a special package for women entrepreneurs involved in small-scale businesses.

The directives were issued during a review meeting chaired by PM Shehbaz on the progress of government initiatives aimed at supporting and developing SMEs. The meeting focused on addressing key issues faced by SMEs and outlined measures to encourage entrepreneurship, particularly among youth and women.

PM Shehbaz emphasised the critical role that SMEs play in economic development worldwide, highlighting their importance in boosting domestic exports and creating employment opportunities. “Our priority is to promote SMEs, empower youth, and support women entrepreneurs, ensuring they not only achieve self-employment but also create more job opportunities for others,” the Prime Minister stated.

The Prime Minister further directed that a detailed survey be conducted to assess the needs of SMEs across the country and provide improved facilities. He stressed the importance of aligning SME support programs with international standards and adopting successful models from developed countries.

As part of ongoing reforms, it was reported that the loan application process for SMEs had been simplified following consultations with relevant stakeholders. This move aims to help more SMEs access loans and grow their businesses.

Additionally, the government is introducing a new category designed to facilitate SMEs and housewives, providing them with easier access to loans and other forms of support for business improvement.

The meeting also reviewed the latest statistics on SMEs in major cities, presented by the Pakistan Bureau of Statistics. A national survey is planned for the coming months to ensure better services and facilities for SMEs across the entire country.

A comprehensive briefing was given on the government’s plan to support SMEs, including the launch of a financial literacy and training program by SMEDA (SMEs Development Authority) in February 2025. Furthermore, by mid-2025, the government will finalise a program aimed at introducing SMEs to modern technologies.