PM business loans scheme: Govt launches initiative to empower youth

Published: December 8, 2013
Prime Minister Nawaz Sharif. PHOTO: REUTERS/FILE

Prime Minister Nawaz Sharif. PHOTO: REUTERS/FILE


With his new financing scheme for the youth, Prime Minister Nawaz Sharif on Saturday unveiled a plan to enable budding entrepreneurs to run their business ventures.

The Youth Business Loans initiative is the government’s delivery of a promise made during the election campaign.  “During the election campaign, I witnessed the vigour and enthusiasm that the youth showed, and promised that if voted to power, the PML-N would empower the youth of Pakistan so they can contribute effectively towards the development of the country,” he said at the launch of the scheme.

The chairperson of the prime minister’s Youth Business Loans scheme, Maryam Nawaz, said the aim was to convert young ‘dependents’ into ‘providers’.

She lauded efforts of the PML-N government to successfully launch six youth welfare programmes despite the financial crunch. Touching upon eligibility criteria for applicants, Maryam said three conditions must be met: an applicant must be a Pakistani, possess a valid computerised national identity card (CNIC) and must have a guarantor.

She also said that forms of the Youth Business Loans scheme would be available from Monday and would be issued free of charge at special counters set up at banks as well as Small and Medium Enterprises Development Authority (SMEDA) offices.

Maryam also explained the procedure for the processing of applications and other details of the programme and said that ‘necessary checks’ have been put in place to ensure the transparency of loans.

She added that 55 project pre-feasibilities have been prepared and are available on the SMEDA website. However, if the applicant has his/her own business plan, it will be acceptable for participation in the award process. The National Bank of Pakistan and the First Women’s Bank have been directed to ensure transparency and merit.

At the event, the prime minister assured transparency in the awarding process. He said that Rs100 billion has been allocated for the programme during the current financial year and that 100,000 unemployed young people will receive loans in the first phase through a ballot. “No one, not even myself, will have the authority to influence the loan award process,” said the premier.

Nawaz denounced the nationalisation policy of the founder of Pakistan Peoples Party and former prime minister ZA Bhutto. Bhutto’s move to nationalise the biggest institutions inflicted losses on the national economy.

The prime minister said his government was mulling over a decision to privatise Pakistan International Airlines (PIA) and other loss-making institutions. “Pakistan would have prospered if there was no nationalisation policy introduced by Zulfikar Ali Bhutto which caused damage to the state,” he said.

Details of the Youth Business Loans

The scheme is designed to provide subsidised financing at eight percent mark-up per annum for 100,000 beneficiaries through National Bank of Pakistan and First Women Bank.

The total mark up rate would be 15 per cent but the government would pay the remaining seven percent on behalf of the applicants.

Those falling in the age group of 21 and 45 years are eligible to apply for loans from Rs100,000 to Rs2,000,000.

Small business loans with a tenure of up to seven years plus one-year grace period and a debt-equity ratio of 90:10 will be disbursed across the country including Gilgit-Baltistan‚ Azad Jammu and Kashmir and the Federally Administered Tribal Areas.

Youth will have an eight-year payback period with the first year as a grace period for repayment.

Published in The Express Tribune, December 8th, 2013.

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Reader Comments (22)

  • qudrat ullah khan
    Dec 8, 2013 - 11:23AM

    i wannna ask about mark up issue.. i mean for a beginner,what is mark up like??? do we have to return 20 lac in 8 years or we have to return half in 8 yrs n remaining by the govt???


  • Dec 8, 2013 - 5:11PM

    i do my diploma D.I.M.S. (diploma in islamic madical science) so now i want to start my own Dwakhana. so i want to get loan for my business. and return policy. please send me details on my id.


  • ghulam yaseen
    Dec 8, 2013 - 9:04PM

    i am electric and air conditiner expert, i want to open own my shop so i want loan 10 lac,please send me details on my id.03002213485Recommend

  • Dec 8, 2013 - 10:41PM

    This is a very very good loan scheme for youth. Great loan scheme for us.Great words from Prime Minister Nawaz Sharif no one not even myself will have the authority to influence the loan award process.This is good returned policy within 8 years. I want to get loan for growth my business import/export Manufacturing. My company allready registered name of company Apparal Global Sourcing (Pvt) Ltd. Pls. send the detail my Email add.


  • Usman
    Dec 9, 2013 - 3:51AM

    The man is giving away loans on printed money. What is his plan for revival of the economy? He’s going to destroy the already fragile economy of Pakistan.


  • sidrat zahid
    Dec 9, 2013 - 11:16AM

    i need a loanRecommend

  • asfandyar wazir
    Dec 9, 2013 - 5:25PM

    Dear Usman ,that money will circulate in pakistan,and will support its economy.this programme will explore the hidden talents of paki youth and will make them able to contribute in progress of pak by investing that money in different industries, small bussiness.


  • asfandyar wazir
    Dec 9, 2013 - 5:27PM

    Dear Usman ,that money will circulate in pakistan,and will support its economy.this programme will explore the hidden talents of paki youth and will make them able to contribute in progress of pak by investing that money in different industries, small bussiness.Recommend

  • Ali awais
    Dec 9, 2013 - 6:29PM

    Although pmyouth program is good scheme but what about those people who dont have a granter.
    i am a technical man done Dae in electrical nd also have experince in installation of electrical,CCTV, network and Fire alarms but i dont have a person who is a govt employ and can give my grantee so what for peoples like me.Recommend

  • azhar
    Dec 9, 2013 - 6:48PM

    kindly clear the condition of guarantee, who can be the guarantor, Can other than govt. servent be the Gurantor? if yes, then define the criteria.


  • jamshaid iqbal
    Dec 10, 2013 - 7:08PM

    kindly clear the condition of guarantee, any condition of education?can other than govt. plz definer the criteria


  • Bilal asif
    Dec 11, 2013 - 10:00PM

    I like this plan my favourite politics mian m Nawaz shareef


  • Imran Ahmad
    Dec 12, 2013 - 2:26AM

    @asfandyar wazir:
    Asfandyar Sb. How a poor man can arrange guarantee. you can understand that in our country poverty and meanness has destroyed all those buildings that we used to call TEMPLES OF TRUST & Fraternity.
    Will you be my Guarantor? at least you are thinking about the welfare of Pakistan and Pakistanis.
    No. You should think about equality before you divide bread

  • Naimat ullah
    Dec 12, 2013 - 10:08AM

    I want loen for bussnis


  • joe
    Dec 12, 2013 - 4:55PM

    If this is ” REAL” not under the table kind a thing . This is a chance. Yet graduated n jobless can make and build a better start for their lives . truth is youth , they can build back anything .


  • Mohammad HAROON
    Dec 13, 2013 - 5:19AM

    Just one question, where the money is coming form >>> IMF LOAN< world Bank
    ya printing press ?


  • sabir ali
    Dec 13, 2013 - 11:48AM



  • faruq choudhary
    Dec 13, 2013 - 11:58AM

    I am want to development a dairy farm so I want to get business loan old send me details on my id


  • Hassan Fraz
    Dec 13, 2013 - 9:55PM

    I m Hassan Fraz i like this plan my favourit politics very much
    mian m nawaz Sharif I want loen for business


  • iqbal hussain
    Dec 16, 2013 - 11:19PM

    well I am iqbal hussain I have done master of business administration(MBA) in 2008.i have sound experience of different businesses and I want to establish a vegetable Mundi in gilgit, because its will be very fruit full for the people of gilgit baltistan and as well as govt.I have ready a research work about vegetable mundi,due to shortage of fund its impossible for me to initiate, so there for provide me 2 millions of rupees in this regards than I will be able to start my idea, Inshallah I will easily return with in a period of time.
    thankey very much and regards

    iqbal hussain,


    Dec 18, 2013 - 7:33PM

    May God bless u and may succeed in ud purpose my mother is great supporter of pml nRecommend

  • yousaf cheema
    Dec 21, 2013 - 7:35PM

    please clear me about the guarantee that if no GOVT servant i have for guarantee then?
    do i provide any other guarantee etc?


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