Prime Minister Shehbaz Sharif on Tuesday officially launched Youth Business and Agricultural Loan Schemes in Islamabad.
State bank Governor, political leaders, and International business investors also participated in the inauguration ceremony. The loan schemes aimed at promoting self-employment and entrepreneurship amongst the youth.
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People in the age group of 21 and 45 years can avail of the loan facility of up to Rs7.5 million under these schemes. For IT and E-commerce businesses, the lower age limit is 18 years.
Small business loans will promote a norm of job creation rather than job seeking among the country’s youth bulge.
The addition of agricultural loans will help the rural youth in bringing innovation to farming which can include mechanized farming, the creation of agricultural value chains, and the solarisation of farming equipment to create more sustainable energy resource management in a climate-challenged country like Pakistan.
Addressing the ceremony, Premier Shehbaz said that the loan “schemes are aimed at making the youth self-reliant”.
“In the past, the PML-N-led government provided Rs40 billion loans to youth and its recovery ratio was 90%. The Nawaz Sharif-led government-issued laptops worth Rs15 billion to the youth.”
The prime minister also added that under the schemes, loans of up to Rs1.5 million can be availed on the personal guarantee of the borrower.
“There will be no interest rate on the loan of up to Rs0.5 million. 5% interest will be charged on the loan of over Rs0.5 million to 1.5 million,” he said, adding, “7% interest rate will be charged on the loan of over Rs1.5 million to Rs7.5 million.”
While talking about the international creditor, the premier said that the government asked the International Monetary Fund (IMF) if it “wants to complete the program for 9th review”.
“The IMF stands with Pakistan,” he quoted the global lender as saying. “Together, we will steer the country out of the crisis.”
PM Shehbaz said that they “are ready to sacrifice their political earnings to save the state”. He added that everybody “will have to take the responsibility for the prevailing situation” in the country.
“The martial law governments are also responsible for the current situation of the country.”
The prime minister went on to say that he would lay down his life and take all measures to save the country.
Speaking on the occasion, State Bank of Pakistan (SBP) Governor Jameel Ahmad lauded the coalition government for launching the initiative of the easy loan programme for youth. “The government is committed to empowering the youth despite financial issues.”
The governor added that special instructions had been issued to the banks for issuing loans to the youth. He urged all institutions to play a positive role in connection with the youth loan scheme.