Punjab gives nod to Rs20b small loans

Aims to help survive Covid-hit economy

LAHORE:

The Punjab government has decided to provide easy loans of Rs20 billion to restore the economic conditions of the province disrupted by the coronavirus pandemic and the consequent lockdown.

The Punjab Industries Department has also sent a summary to Punjab Chief Minister Sardar Usman Buzdar which has been approved. Under this scheme, small loans of Rs0.5 million to Rs5 million will be distributed among the beneficiaries.

The loan will be given to new and old businesses that had been affected by the coronavirus pandemic and the lockdown situation.

So far, no such scheme had been launched by Punjab government but now the government has allocated Rs20 billion for which Rs9.5 billion will be provided by Punjab government and Rs10.5 billion will be provided by Bank of Punjab for this initiative and the strategies were made by the industries department in this regard.

Punjab Industries and Trade Minister Mian Aslam Iqbal said that the scheme was being launched after Eidul Azha and a lot of work had been done for that. “Punjab government was working to revive the industry in the province. The move will provide employment to the people as well as enable them to create jobs opportunities from small industries,” the minister said.

These small industries, he added, will later turn into big industries and because of this not only will the country prosper but the government will also receive revenue. “Work has been done on this,” he further said.

He maintained that this was a positive step in the current situation so that all the people whose businesses were affected by the Covid-19 pandemic can resume their work by taking cheap loans while the skilled youth with degrees can start their work.”

He stated that no strict conditions were being laid down for obtaining loans but steps were being taken to make it easier for people to get loans and pay instalments easily. “Due to Covid-19, industries in Punjab was shut down and production declined. At present, 45% of the industries is still closed.”

He elaborated that the situation after Eidul Azha will be seen regarding how to open this industry and this will accelerate economic activities in the province.

He highlighted that cheap loans should be given to the borrowers because of the ongoing financial situation so that businesses can be revived.

Responding to a question, he said that initially this scheme was being started with Rs20 billion but later it will be reviewed by the government, in case there was a need to increase it.

“The industries department is working to increase the employment opportunities so that the country’s industries could be given relief and they could work as much as possible and people could get employment.”

The government was trying to keep the mark-up rate on loans low due to high production costs as business activities cannot be accelerated due to high production, the provincial minister explained.

“Punjab CM has already set up economic zones in the province which was inaugurated by Prime Minister Imran Khan. Now that the virus situation has been brought under control around the world, foreign investment is also returning which will employ millions of people in Punjab.”

In the coming days, the province will see a new wave of prosperity, the industries minister claimed.

Published in The Express Tribune, August 1^st, 2020.