PM Nawaz approves loan scheme; 350,000 people to benefit
12 November, 2013
ISLAMABAD: Prime Minister Nawaz Sharif said on Monday the government would support talented and unemployed youth of Pakistan to make them self-reliant. Chairing a meeting to review the Prime Minister's Youth Programme, he approved the Prime Minister's Youth Business Loan Scheme under which 350,000 youth would be given loans.
Nawaz was told that net beneficiaries from the loan scheme would be about 10 million people from across the country.
The prime minister called for ensuring complete transparency and fairness in the process of loan disbursement and said, "No political and administrative interference will be tolerated in the loan scheme."
He said he would personally supervise and monitor the loan scheme so that the youth of country gain maximum benefits from the programme.
The meeting was also attended by Finance Minister Ishaq Dar, Minister for Information Pervaiz Rashid, Secretary to Prime Minister Javed Aslam, Finance Secretary Dr Waqar Masood Khan and State Bank of Pakistan Governor Yaseen Anwar. The small business loan scheme will provide loans to the unemployed youth, especially educated, looking for establishing or extending business enterprises.
All Pakistani men and women, aged between 21 and 45, and having entrepreneurial potential will be eligible for the scheme with 50 percent quota reserved for women. Under the supervision of State Bank of Pakistan, initially the National Bank and First Women Bank will execute the scheme while other banks may join in after approval of their respective business plans.
Loans will range from Rs 0.5 to Rs 2 million with an average loan size of Rs 1.25 million. The debt-equity ratio for these schemes will be 90:10 with tenure of seven years.