ISLAMABAD: Finance Minister Shaukat Tarin on Friday asked banks to advise on expanding soft loans program designed for youth to start businesses.
In a meeting with presidents of National Bank, Habib Bank and Bank of Punjab, Tarin sought their views on expansion of the Kamyab Jawan program under which soft loans are given to startups for businesses. The government has so far subsidised Rs8 billion under the concessionary loan program in the range of Rs100,000 and Rs25 million.
The minister directed all the major banks and microfinance institutions to come up their suggestions on the design of the program within a week’s time and also earmark a percentage of their resources for the purpose.
“Government will provide credit guarantee and risk sharing facility to provide comfort to the commercial banks,” he said.
Banks were asked to prepare a design of a program (for tier 1 borrowers) through which they could collaborate with microfinance banks and microfinance institutions and provide short/medium term loans at zero or least possible interest rates for entrepreneurship, agricultural development and for financing housing construction.
The participating banks and other stakeholders shared their views and experiences in the meeting on the subject and agreed with the general idea of maximizing the use of financial resources by micro-credit users. Meanwhile, the finance minister asked officials to share progress reports related to proposed privatisation of 2,400 megawatts RLNG power plants during a meeting next week.
In a meeting of the sub-committee of the cabinet committee on privatisation through a video link, Tarin directed all the relevant stakeholders to meet during the next week for sharing progress on the respective tasks assigned to them to take the privatisation transaction of National Power Parks Management Company Limited (NPPMCL) to its final phase.
Adviser to Prime Minister on Institutional Reforms and Austerity, Federal Board of Revenue chairman and others participated in the meeting. During the meeting, the progress on the privatisation of NPPMCL was reviewed.
The meeting was told about the progress on the matters with the independent power producers has boosted the investors’ confidence. There is also a significant development on the matters which have to be decided among the different government entities, ministries and provincial governments.
The finance minister said although he is supportive of adopting all those measures that can boost the industrial development, generate employment and help in expansion of businesses; any decision, regarding the taxation/ relief provided to any industry which has direct linkages with general wellbeing and health of the public, will be taken after a careful analysis of all the facts and arguments.
Tarin was talking to a delegation of the representatives of the Beverage Industry of Pakistan through a video link. The delegation presented to the finance minister the progress made by the beverage Industry of Pakistan during the last 8 to 9 years. They also discussed the role of the beverage industry in revenue and employment generation and the change in local and global business scenarios after the onset of COVID-19. The delegation also submitted their proposals for the upcoming budget.