Entrepreneurs of NMDs: KP launches mark-up free microfinance scheme

PESHAWAR: The Khyber Pakhtunkhwa government Thursday launched an Interest Free Microfinance Scheme for the entrepreneurs of the newly merged districts (NMDs) of the erstwhile Federally Administered Tribal Area (FATA).

Under the scheme, a small loan up to Rs 75,000 would be offered to the entrepreneurs of the merged districts. The purpose of the scheme is the promotion of small and medium entrepreneurship and cottage industry in the newly merged districts.

In this connection, KP Industries Department and Akhuwat Foundation signed an agreement here at the CM House with Chief Minister Mahmood Khan as chief guest. Special Assistant to CM on Industries Abdul Kareem, Secretary Industries Javed Marwat, Akhuwat Foundation CEO Dr Amjad Saqib and other concerned high ups also attended the ceremony.

The interest free loan scheme will consist of revolving fund of Rs 1 billion. Under the said scheme, 25 percent quota has been allocated for females, 5 percent for special persons and 2 percent for transgender.

This interest free loan scheme is being executed through Akhuwat Islamic Microfinance which is already implementing an interest free scheme worth Rs 500 million in merged areas.

This is the second important scheme which will be implemented through Akhuwat Islamic Microfinance under which more than 219,000 people of merged areas would be facilitated over a period of next 13 years. Loans would be totally interest free and will be provided purely on merit.

Addressing the ceremony, Chief Minister Mahmood Khan termed this initiative as another important step of the provincial government towards the economic prosperity of tribal districts adding that small and medium entrepreneurship and cottage industry was the backbone of national economy.

He said incumbent government was going all out to develop that sector which had been neglected in the past and added that Prime Minister Imran Khan was taking keen interest in uplifting that important sector.

Mahmood Khan said SMEs and cottage industry could not flourish without financial support, that’s why the government was going all out to provide financial grants and Rs 4.00 billion had been allocated under the project ‘economic growth and job creation’ for the purpose.

Mahmood Khan underlined that provision of interest free loans to marginalized segment of society was another important step towards the realization of Prime Minister Imran Khan’s vision of Riasat-e-Madina.

He stated that the provincial government would also start interest free loan scheme for the settle districts in phases starting from the backward areas.

Copyright Business Recorder, 2021