Islamabad: A meeting of Joint Steering Committee and Advisory Board of Kamyab Pakistan Program (KPP) has decided to select wholesale lenders (banks) for the programme through a bidding process and the government guarantee to banks would now be 50 percent instead of initially envisaged 100 percent.
A meeting of the Joint Steering Committee and Advisory Board of KPP presided over by Finance Minister Shaukat Tarin Friday reviewed the designed programme and contours of the KPP were finalised in consultation with all relevant stakeholders.
According to the Finance Ministry, the revised proposal would now be submitted before the ECC for approval prior to taking to federal cabinet for ratification.
The meeting, after discussion, finalised that a bidding process would be undertaken for the selection of the wholesale lenders (banks) that would be engaged with executing agencies, microfinance providers.
The government would extend guarantee to wholesale lenders (bank) up to 50 percent.
An official on condition of anonymity said that one of the features of wholesale lenders was 100 percent government implied guarantee to banks at 90 days past due from due date.
The meeting also decided that there would be a quarterly performance review of wholesale lenders with reference to disbursement of funds as this would ensure transparency and due diligence in evaluating performance of wholesale lenders with reference to disbursement of funds.
Another feature of the programme would be formation of portal namely, Kamyab Pakistan Information System (KPIS) with a toll-free number, which would be integrating KPIS through Telcos through the National Telecommunication Corporation (NTC).
The portal will be integrated with Ehsaas data and the Nadra for verification of beneficiaries' eligibility to facilitate the executing agencies (microfinance providers) for finalising the financing modalities in a most efficient and seamless manner.
Tarin was mentioned as stating that KPP is a flagship programme of the government, which is designed to transform the lives of the marginalised segments of the society and ensure their financial empowerment.
The minister added this is the first programme of its kind in Pakistan's history, wherein, the banks are being connected to the lowest income segment through microfinance institutions.
Therefore, great care is being taken before the launch of the KPP with underlying rationale to ensure all stakeholders are on board for the ultimate success of the programme.
The program will be launched in phases to cover all the areas of Pakistan effectively, he said that during the first phase, Khyber-Pakhtunkhwa, Balochistan and the poorest of the poor districts of Punjab, Sindh, GB, and the AJK will be covered.
The finance minister has recently told media that the size of the KPP for the first year has been reduced to Rs156 billion from Rs315 billion.
Special Assistant to the Prime Minister (SAPM) on Youth Affairs Usman Dar stated that KPP will be of great significance in creating income generation opportunities for our talented youth and will go a long way in breaking the vicious cycle of poverty in the country.
The meeting was attended by the SAPM on Youth Affairs, Usman Dar, Deputy Governor State Bank of Pakistan (SBP) Sima Kamil, Chairman Securities and Exchange Commission of Pakistan (SECP) Aamir Khan, Chairman Akhuwat Dr Amjad Saqib, Chief Executive Officer (CEO) National Rural Support Programme (NRSP) Dr Rashid Bajwa, Chairman Rural Support Programme Network (RSPN)Shoaib Sultan, Convenor KPP Zafar Masud, Chairman Pakistan Banks' Association (PBA) Muhammad Aurangzeb, President Meezan Bank Irfan Siddiqui, President Bank Alfalah Atif Bajwa and other senior officers participated in the meeting.
Copyright Business Recorder, 2021