Ehsaas Nojawan Programme: KP govt starts distributing interest-free loans among youth

PESHAWAR: The Khyber Pakhtunkhwa government has initiated the distribution of interest-free loans under the Ehsaas Nojawan Programme to empower the youth.

An official handout said that Chief Minister Ali Amin Gandapur was the chief guest at a ceremony to distribute loan cheques.

Cabinet members, including Syed Fakhar Jahan, Brigadier (Retd) Muhammad Sajjad, Barrister Muhammad Ali Saif, and Muzzammil Aslam, officials from the Department of Youth Affairs and selected beneficiaries of the programme attended the event.

The Ehsaas Nojawan Programme is a flagship initiative under the umbrella of Ihsas Initiatives of the provincial government aimed at economically empowering the young lot of the province by providing them with interest-free loans to start their own businesses.

This three-year programme, launched with an initial budget of Rs3 billion, has an allocation of Rs1.1 billion in the current fiscal year.

This programme consists of two components. The first component of the programme is being implemented in collaboration with the Bank of Khyber.

Under this component, clusters of three to five individuals aged 18 to 35 are eligible for loans ranging from Rs1 million to Rs5 million.

A flexible repayment schedule spanning eight years has been designed, with the first 20 months as a grace period during which no repayments are required.

The second phase, in collaboration with Akhuwat Microfinance Bank, has a budget of Rs2 billion. This phase offers interest-free loans between Rs100,000 and Rs500,000 to individuals aged 18 to 40 for small-scale business ventures. Special quotas have been reserved for women and persons with disabilities.

Addressing the ceremony, Chief Minister Ali Amin Gandapur said that three more programmes under the Ehsaas initiative—Ehsaas Apna Ghar Programme, Ehsaas Rozgar Programme, and Ehsaas Hunar Programme would be launched with a combined allocation of Rs15 billion in the current budget.

The chief minister said that the Ehsaas Nojawan Programme was a critical step toward financial independence for the youth. He said the initiative was aimed at encouraging young people to create employment opportunities for themselves and generate jobs for others.

He urged the youth to prioritize entrepreneurship over seeking employment, highlighting the immense potential for growth in business ventures.

The provincial government, he said, was committed to supporting youngsters with innovative business ideas.

Gandapur stressed the importance of hard work and integrity and said, “Honesty is the best strategy, and there is no substitute for hard work.”