The government has announced the inclusion of two new initiatives under the Prime Minister’s Youth Business and Agriculture Loan Scheme. These include Rs1 million loans for overseas workers and a financing scheme for laptops to support students, freelancers, and entrepreneurs.
The loan for prospective overseas workers will cover skill training, travel expenses, and initial settlement costs. Eligible applicants must be aged 21 to 45 years and have a valid job offer or recruitment through licensed Overseas Employment Promoters.
Loans will be booked jointly in the name of the overseas worker and a family member residing in Pakistan. The repayment period is set at five years, with monthly installments.
The Finance Division briefed the Economic Coordination Committee (ECC) on the scheme, highlighting its objective of promoting entrepreneurship among youth through accessible loans with reduced markups. Since its launch in January 2023, the programme has disbursed Rs123.06 billion to 249,053 borrowers as of October 31, 2024.
To further its scope, the ECC approved Tier 4 under the scheme. This new component offers loans for laptops, categorised into three levels: Rs150,000 for basic models, Rs300,000 for medium-level laptops, and Rs450,000 for advanced laptops.
The initiative targets students of Higher Education Commission-recognized institutions, freelancers, and entrepreneurs aged 18 to 30 years. The loan tenor is four years, with 0% end-user markup.
A budgetary allocation of Rs8.6 billion has been made for the current fiscal year, with a 10-year plan in place. Key loan features include an 80:20 debt-to-equity ratio and a risk mitigation provision of 29% on a first-loss basis.
The Finance Division emphasized the importance of prioritising financial assistance for skilled workers seeking overseas employment. The proposal for a Tier 5 component to further enhance the scheme’s reach is under review and is expected to be expedited.
