Economic empowerment: PM clears loan scheme worth Rs3.5 billion

Half of interest-free scheme’s beneficiaries will be women.

ISLAMABAD:

Prime Minister Nawaz Sharif on Tuesday approved Rs3.5 billion for an interest-free loan scheme which will cater to one million people – half of them women. Under the scheme, the disbursements will start in the third week of June.

“Microfinance schemes are the catalysts for political and economic development while microcredit is an instrument of change for the poorest segment of society, especially women,” he said at a meeting held at the Prime Minister House. “Such schemes further boost productive economic activities in the country,” he added.

While briefing the meeting, Maryam Nawaz, the chairperson of the Prime Minister Youth Scheme, said that “transparency and merit are the hallmarks of our programme and we believe in disbursing capital and imparting skills for development of our youth”.

She said the government has earmarked Rs3.5 billion for the interest-free loan scheme for target beneficiaries from all over the country which will be disbursed through the Pakistan Poverty Alleviation Fund. Each federating unit has been given a share as per the NFC Award, while the primary focus will be on the rural areas.

Each beneficiary will receive up to Rs50,000 through the scheme which will benefit one million people. A proper loan centre and business support centre will be set up to facilitate the beneficiaries.



The meeting also reviewed arrangements for the second balloting of the Prime Minister Youth Business Loan Scheme which, according to Maryam Nawaz, will be carried out next month. The disbursement process is being speeded up and the first tranche of Rs5.5 billion has been disbursed among more than 5,000 applicants.

She told the meeting that training of selected youth in the Prime Minister Youth Skill Development Programme has commenced from May 12, 2012. Twenty-five thousand youth from less developed areas of the country will be trained in 100 disciplines under the program, she added.

The duration of training varies between four and six months for various disciplines and will cost Rs800 million. A 35% quota has been allocated for females keeping in view the government’s policy of empowering the country’s women.

About the Fee Disbursement Scheme, Maryum Nawaz said it would benefit around 33,000 eligible students during the current financial year. Under the scheme, MPhil and PhD students from 59 districts will avail tuition fee provision and other education charges.

Published in The Express Tribune, May 14^th, 2014.