Good news for the businesses and startups run by youth in Khyber Pakhtunkhwa (KP)! In order to give a boost to the economy of the province and increase employment opportunities, the KP Government has announced interest-free loans worth PKR 3.8 billion through which young people will be able to finance their businesses and startups.
More About KP Government Interest-Free Loans
The current government of Pakistan led by Prime Minister Imran has taken steps to eradicate poverty from the country and create employment opportunities for youth such as Kamyab Jawan Programme. The current initiative of the Khyber Pakhtunkhwa Government will also address the same goals and improve the economic stability of the province as well as provide a chance to young individuals to be able to pursue their dream projects and be successful entrepreneurs.
The startup culture in Pakistan is growing and students and youth from all over the country are launching their businesses — some on their own and some through incubation centres. Their goal, however, is the same—to bring innovation and advancement in different fields and sometimes bring automation and digitization in processes that would otherwise require a lot of precious time.
The formal approval for interest-free loans by the KP government was given during a meeting held at the Planning and Development Department chaired by Additional Chief Secretary, Shakeel Qadir Khan. Worth PKR 3.8 billion, the interest-free loans will be disbursed among 3,500 businesses and over 10,500 families of the province are expected to benefit from these loans.
In 2018, the National Assembly (NA) of Pakistan passed a constitutional amendment that merged Federally Administered Tribal Areas (FATA) with the nearest province Khyber Pakhtunkhwa. Since then these districts come under the jurisdiction of the KP Government. The programme to offer interest-free loans by the KP government puts a special emphasis on the youth of these merged areas.
Two Components Of Interest-Free Loans Programme By KP Government
Although the programme aims to provide a platform for youth-led businesses and startups, it also focuses on other members of the society who could use the disbursed amount and establish their own businesses to increase their overall household income. For this, there are two components out of which one component only focuses on the youth of newly merged districts of Khyber Pakhtunkhwa.
- Innovation Fund for Entrepreneurs, Youth and Women
- Startup Program For The Economic Uplift of the Youth
Innovation Fund for Entrepreneurs, Youth and Women
The first component ‘Innovation Fund for Entrepreneurs, Youth and Women’ will focus on businesses on a merit basis. The total amount set aside for this component of the programme is PKR 2 billion.
Startup Program For The Economic Uplift of the Youth
The second component of the programme focuses on uplifting the potential of youth especially of merged areas of KP province. The budget for this component is PKR 1.8 billion.
Quota Of Beneficiaries For KP Government Interest-Free Loans
The convenient interest-free loans will be provided to youth running businesses and startups to make their ventures successful and profitable. But it was also discussed during the meeting that 25% of the entire loan amount will be reserved for other beneficiaries to enable them as well to set up their businesses and earn a sustainable income. These beneficiaries are:
- Women
- Members of the transgender community
- Differently-abled people
- Minorities
There are three categories of loans for which youth intending to start a business or run their startups can apply:
- Loans of half million rupees
- Loans of 1 million rupees
- Loans of 2 million rupees
Through the programme, the youth will not only be able to fund their ventures but also be able to receive training on the development of a business plan and operations by experienced professionals and specialists from the manufacturing, services and trading sectors. The launch date of the programme will be provided through public announcements and the entire plan will be executed by the Culture, Tourism and Sports Department and the Bank of Khyber.
If you belong to Khyber Pakhtunkhwa and have a viable business plan, this is your chance to procure sufficient financing for your venture. If you don’t, here are key elements for building a successful startup that will guide you and set you on the right course. For information on key government initiatives and real estate trends in Pakistan, follow Zameen Blog and subscribe to Zameen Newsletter for regular updates.
