Rs22b given under PM’s loan scheme since Jan, says aide

People can borrow up to Rs7.5 million at 7% under initiative

ISLAMABAD:

People have availed loans of Rs22 billlion in the six months since the rollout of Prime Minister Shehbaz Sharif’s Youth Business & Agriculture Loan scheme.

As part of the revived initiative, inaugurated in January, youth, transgender and special persons aged between 21-45 years will be able to apply for loans of up to Rs 7.5 million from 15 designated commercial, Islamic and SME banks to set up their own businesses.

A quarter of the amount, or 25 per cent, has been set aside as quota for women applicants, stated Special Assistant to the Prime Minister on Youth Affairs Shaza Fatima Khawaja.

According to the website of one of the banks, the loans are divided into three tiers. It identifies tier 2 to be loans between Rs500,000 and Rs1.5 million. The mark up for this loan is 5 per cent.

Tier 3 loans are from Rs1.5 million to Rs7.5 million, and will be charged 7 per cent interest. Pakistan’s key interest rate currently stands at a record 21 per cent.

The debt-to-equity ratio for tier 2 is 90:10 while for tier 3 it is 80:20. The website adds that people older than the designated limited can also avail the loan if one of the partners, who has to be the applicant, falls within the designated age.

“Through youth and agriculture loan program, the government aims to reduce unemployment by providing financial assistance and guidance to talented Pakistanis,” she said. She said the agriculture-based loan would help youth benefit from innovation and the latest technology used in the sector to bring it at par with international standards.

The aide added that phase three of the premier’s laptops scheme was also being rolled out. “We will provide 100,000 high-quality laptops to talented students studying in public sector universities across the country purely on merit.”

The government has allocated Rs10 billion for it in the budget. Students of all degree programmes including BS (16 Years), MS/MPhil (18 Years) and PhD can benefit from this scheme, she added.

WITH INPUT FROM APP.

 

Published in The Express Tribune, June 19^th, 2023.