PESHAWAR: The Khyber Pakhtunkhwa (KP) government has announced to provide loans of Rs12 billion to Small and Medium Enterprises sector of the province for purchasing modern machinery.
The government has said that no interest rate would be charged in the first year of the loan while 2% interest rate will be applicable in second year. The interest rate will be borne by the provincial government in the first and second year of the loan provided under the State Bank of Pakistan (SBP) Direct financing Scheme.
Read more:
‘Pakistan’s exports to Afghanistan declined by 82pc’
KP to re-open more trade routes with Afghanistan
Traders urge joint efforts to boost Pak-Afghan trade
In the regard, the Bank of Khyber (BoK) and KP industrial department signed a Memorandum of Understanding (MoU) on Friday. The KP Minister for Finance and Health Taimur Salim Jhagra said, “Pakhtunkhwa has launched the largest ever loan program for SME sector in its history. The BoK and SBP are offering Shariah Compliant loans of up to Rs20 million, with year one mark up of 0%.”
He said that the loan will play an important role in modernising the industrial sector, developing the small and medium enterprises and generating more job opportunities. Jhagra added that the world, included Bill Gates, has appreciated Pakistan’s efforts against Covid-19.
These loans to be provided by Bank of Khyber will have six percent markup rates under the state bank of Pakistan rules and regulations, however, the provincial government will bear 4% of it while only 2% to be paid by industries.
On Thursday, Special Assistant to Prime Minister for Youth Affairs Usman Dar has said that under “the successful youth program”, 700 youth – including 246 women – in Peshawar has been provided loans to start their small businesses. Inaugurating a sport event in Peshawar in which students of 100 universities were participating, Dar said so far Rs33 billion has been distributed under this program which has generated over 50,000 jobs across Pakistan.