Rs5.58bn granted to 251,351 youth under PM Interest Free Loan Scheme

ISLAMABAD: Around 251,351 interest free loans amounting to Rs 5.58 billion have been granted to poorest of the poor under Prime Minister's Interest Free Loan Scheme.

These interest free loans have been provided in 427 Union councils of 44 districts across the country and 62 per cent of loan beneficiaries were female. The recovery rate of the scheme was 99 per cent.

Official sources on Monday said Pakistan Poverty Alleviation Fund (PPAF) has been implementing this scheme through its 26 Partner Organizations (POs).

It must be noted that 54,000 Benazir Income Support Programme (BISP) beneficiaries have been graduated from dependency to self-reliance by establishing their own businesses with loan secured under this scheme.

The sources said PM's Youth Programme is a remarkable initiative of Pakistan Muslim League (PML-N) government for socio-economic development of youth in a bid to combat soaring unemployment.

This Programme has broad canvas of schemes enabling youth and poor segments of population to get good opportunities of employment, economic empowerment, acquiring skills needed for gainful employment, access to IT and imparting on-the-job training for young graduates to improve probability of getting a productive job.

Prime Minister's Youth Programme includes six schemes - PM's Youth Business Loan Scheme, PM's Interest Free Loan Scheme, PM's Youth Skill Development Programme, PM's (National) Programme for Provision of Laptops to Talented Students, PM's Fee Reimbursement Scheme for Less Developed Areas, and PM's Youth Training Scheme.

Giving scheme-wise details, the sources said under PM's Youth Business Loan Scheme, 17,720 loan cases worth Rs. 17.713 billion have been disbursed so far among potential entrepreneurs either to establish new businesses or to expand existing ones.

The recovery rate is 94 per cent with 6 per cent delinquency rate. These are subsidized business loans at 6 per cent mark up for a period of eight years, with the first year as grace period, and are granted by banks after satisfactory evaluation of borrowers' business feasibility plans.

It is worth-mentioning that Meezan Bank, Al-Baraka Bank, Dubai Islamic Bank and Faysal Bank are implementing this scheme in Islamic financing mode.

Under PM's Youth Skill Development Programme, so far 75,000 youth both male and female have been trained in more than 100 demand-driven traded across Pakistan as per NFC award quotas.

Training classes of another 25,000 trainees under Phase III (Batch-II) have been commenced. Besides imparting free training, Interns are also getting Rs. 3000/month scholarship for the six-month training period. However, Federally Administered Tribal Areas (FATA) students are being paid Rs. 4000/month as stipend.

The 33 per cent of total training slots are reserved for female trainees. Madaris graduates and disabled youth are also catered to under this scheme.

Under PM's (National) Programme for Provision of Laptops to Talented Students Phase-I & II, so far 189,519 laptops have been distributed among Ph.D/ MPhil/MS. Masters' and bachelors' students of 97 Higher Education Commission (HEC) recognized universities across Pakistan.

Moreover, the process of delivery of laptops to universities under Phase-III of the programme has been initiated, and HEC has planned to distribute another 100,000 laptops among eligible university students before Summer break.

It is worth mentioning that under Corporate Social Responsibility (CSR) component of Phase-I of the Scheme, HEC has established e-class rooms and laundry facilities at IBA Sukkur and COMSATS Islamabad.

In order to promote IT manufacturing industry, and contribute significantly in country's Gross Domestic Product (GDP), first time in history of the country, Haier Pakistan, the vendor of Scheme, has set up a state-of-the-art Laptop Assembly Plant.

Under PM's Fee Reimbursement Scheme, so far tuition fee of 161,038 students of less developed areas across the country amounting to Rs. 4.7 billion has been reimbursed/paid up front to universities. Students hailing from less-developed areas and enrolled in MA, MS/MPhil and PhD programmes in HEC-recognized public sector universities are eligible to apply under this Scheme. Due to this valuable intervention, 100 per cent enrolment has increased in some universities of Balochistan like Sardar Bahadur Khan Women University, Quetta.

Under Phase-I (Batch I & II) of PM's Youth Training Scheme, around 44,000 fresh graduates, degree/diploma holders, were granted 12-month paid internship @ Rs. 12000/month based on their matching demand in reputed public and private sector organizations.

At present 29,391 interns are actively pursuing internships, whereas placement letters to another 21,000 interns will be issued shortly after verification of their degree/diplomas/credentials by HEC/Technical Education Boards/NADRA.