Entrepreneur loan scheme: youth revolution takes roots

Courtesy:-  S Rahman
Visualise the scenario when a very large section of 60 per cent of Pakistani population – youth - will become providers converting from their status of dependents. Quoting Maryam Nawaz, Honorary Chairperson of the PM Youth Programme, the hundred-billion-rupee package announced by prime minister for youth's empowerment and financial independence will convert the youth from dependents to providers. Once that dream comes true, Pakistan will definitely acquire the status of an economic giant, free from the crutches of foreign aid. There can be no two opinions about this turnaround that is bound to materialize in the foreseeable future. For sure, the youth revolution has taken roots courtesy the wise and timely steps announced by PM Sharif. In fact, the PM has given serious thought to this most important facet of national development. Being already blessed with one of the biggest youth element that is not available to majority nations of the world, Pakistan can get strengthened and grow, in leaps and bounds, provided this most important element of national power (the youth) is given a proper sense of direction, motivation and appropriate and timely facilitation. That has now been done as evidenced from PM's Business Loan Scheme for Youth. The Prime Minister is right in his contention that the government has opened new vistas for the youth to become self-reliant. Previously, it was extremely depressing to note the youth power going waste due to loss of direction and lack of facilitation. Those in other political parties who had been boasting of their youth power are yet far away from formulating a working plan for youth whereas the PML-N government has surpassed all other self-styled champions of the youth cause by announcing the Youth Business Loan Scheme that is a total departure from such schemes announced in the past. In the past, such schemes were either laden with complicated procedures and formalities or had been in the grip of corruption mafia that would disburse loans to their favourites or those paying illegal gratification to the lending officials. All those ugly things will not be tolerated anymore; the PM has not only declared it unequivocally but also evolved a mechanism to plug the loopholes. According to the PM, an effective monitoring mechanism has been put in place to keep a check on the loan award process so that merit is ensured. In the first phase, one hundred thousand unemployed youth would be given loans through ballot and “no one, including me, would have the authority to influence the lending process”. What is yet more encouraging and good news for more than half of the country’s population - women folk – is that 50 per cent of the loans allocated for the female youth. In the present scheme, most of the discrepancies identified in similar systems functional in the past, have been removed and no harsh preconditions have been attached to the youth business loan programme. Even the repayment plan is quite easy as the loan-securing youth will be given eight-year payback time with first year grace period for repayment at low mark-up rate of eight per cent. The youth applying for loans will have to pay the mark-up of eight per cent while the remaining seven per cent will be paid by the government since total mark-up rate is 15 per cent. Technical and business guidance will also be provided so that the youth be guarded against possible failures of their businesses. For this purpose, 55 project pre-feasibilities have been prepared and are available on SMEDA website, according to Maryam Nawaz. But the applicant can also participate in the loan award process on the basis of his/her own business and expertise. 

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