K-P youth, SMEs to receive soft loans

BoK to support initiative approved by cabinet

PESHAWAR:

The Khyber-Pakhtunkhwa government has given its nod for providing subsidized loans to support the youth, as well as small and medium enterprises (SMEs) within the province.

The Bank of Khyber (BoK) is set to extend these loans with additional concessions, backed by the provincial government, which will cover the associated costs.

This approval came during a meeting of the caretaker provincial cabinet, presided over by Chief Minister Muhammad Azam Khan.

In attendance were cabinet members, Chief Secretary Nadeem Aslam Chaudhry, and relevant administrative secretaries. Representatives from the Bank of Khyber presented a comprehensive briefing to the Cabinet regarding the loan schemes, focusing on SMEs and youth, facilitated by the State Bank of Pakistan. The presentation also outlined the province’s active involvement in such initiatives and the subsequent benefits they bring.

This provincial government initiative is poised to make interest rates for borrowers and institutions significantly more affordable. Additionally, during the meeting, the provincial cabinet approved the allocation of land for the establishment of a public library in Para Chinar Upper Kurram, covering an area of two kanal and six marla.

They also endorsed the construction of a 13.5 kanal judicial complex in Sarai Norang, Lakki Marwat.

Furthermore, the provincial cabinet granted approval for reviewing budget estimates allocated to the Khyber-Pakhtunkhwa Housing Authority for the years 2022-23 and 2023-24. It also approved the delegation of enforcement powers to all Tehsil Municipal Administrations (TMAs) and the assignment of controlling officer powers to relevant assistant commissioners.

The cabinet also approved amendments to the Muslim Family Laws Ordinance 1961 and the inclusion of the Oath of Prophethood in the Marriage Registration Form. By-laws for 2023 were also given the green light.

It’s crucial to note that the provincial cabinet did not approve the at-source deduction of the $88.673 million debt owed by Khyber-Pakhtunkhwa in the funds received from the federal government for polio eradication. Nor did it approve the payment of the provincial government’s share of the $155 million loan for future use, a stance that aligns with the opposition expressed by the Punjab province to similar federal government conditions.

To provide context, the Khyber-Pakhtunkhwa government had initiated the second phase of the Insaf Rozgar Scheme in December 2022. This scheme aimed to provide loans of up to Rs1 million to empower youth in starting their own businesses. The scheme was estimated to cost the provincial exchequer Rs700 million. Then Finance Minister of K-P, Taimur Jhagra, emphasized that despite financial challenges, the provincial government was committed to offering opportunities for the youth of the merged districts through interest-free loans. These loans were targeted at low-income individuals, both male and female, who were unemployed, and came with specific terms and conditions.

The Insaf Rozgar Scheme, initially announced in 2019, has been a notable initiative by the provincial government to promote entrepreneurship in the region, particularly in the newly merged tribal districts (NMTDs) for which Rs0.5 billion was allocated in 2020.

Published in The Express Tribune, October 12^th, 2023.