Prime Minister Youth Programme
Prime Minister Youth Programme
Mr. Muhammad Usman Dar, Special Assistant to the Prime Minister on Youth Affairs called on Dr. Sania Nishtar, Chairperson Benazir Income Support Programme (BISP) to discuss various youth-focused initiatives, especially poverty graduation programme for the rural and marginalized youth.
Muhammad Usman Dar apprised Dr. Sania Nishtar of planned National Youth Development Framework (NYDF) that envisages six core thematic areas including Mainstreaming of Marginalized Youth, Employment and Economic Empowerment, Civic Engagement, Social Protection, Health & Wellbeing, and Youth-Focused Institutional reforms for the socio-economic development of youth in the country.
It was agreed in the meeting that both PMYP and “Ehsas” teams would work together to devise an effective strategy in this regard through financial inclusion. Moreover, it was decided that Kamyab Jawan and Ehsas Programmes would be aligned to ensure a substantial impact for social engagement and economic empowerment of youth in different sectors of economy.
Prime Minister Youth Loan Programme
The name of the scheme will be "Prime Minister's Youth Business Loans" and it will focus on (but will not be restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprises.
Entrepreneurial potential;
Applicant may apply for loans under this scheme only from the designated branch mapped with his/her area of residence/business
One/Up to 03 Guarantor/s having cumulative income equal to 1.5 of the amount applied for under the scheme Personal/Blood relations can also give guarantee for a borrower.
A government servant of BPS-16 and above can also act as a guarantee.
50% quota of women borrowers.
90:10 with tenor of up to 8 years (including 1 year grace period). The borrower’s contribution of equity would be either in the form of cash or immoveable property, and will be required only after approval of the loan.
Permissible collaterals (business hypothecation)
6% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps.
Sectoral Distribution of Loans
For the time being, there will be no limit on the maximum number of loans for any sector. Placement of ceilings can be considered subsequently keeping in view the importance of sectors and applications received for various sectors.
Geographical Distribution
In the case of Balochistan, at least one branch of NBP will be designated per division
All non-designated NBP branches will guide the borrowers to the nearest designated branch along with facilitation to receive and dispatch the application to the nearest designated branch if so requested by the borrower.
SBP to ensure that loans are broadly in conformity with provincial populations.
Non-refundable form processing fee would be Rs.100/- at the time of submission of form. However, no fee will be charged for the form itself and a photocopy will also be admissible.
Will require minimum essential information and the format will be as simple as possible to facilitate applicants
SBP will arrange appropriate training for private banks to implement the scheme. NBP and FWBL will provide appropriate training to their own staff. NBP will also assist in training of FWBL and SMEDA Staff
National Bank of Pakistan(Branches)
Frst Women Bank Limited(Branches)
Habib Bank Limited(Branches)
Habib Metropolitan Bank(Branches)
Dubai Islamic Bank(Branches)
Allied bank Limited(Branches)
Muslim Commercial Bank(Branches)
United Bank Limited(Branches)
