Interest-free loan scheme launched for merged districts

PESHAWAR: The Khyber Pakhtunkhwa government has launched a long-term interest-free microfinance scheme for entrepreneurs to support small businesses and enhance livelihoods in the merged districts.

A press release on Tuesday said the initiative, which spans 13 years (2021–2034), has already made substantial progress, with 66,557 individuals benefitting from the program so far, while 22,152 more are currently receiving financial support under the scheme.

The program provides interest-free loans ranging from Rs25,000 to Rs75,000, with a flexible repayment period of up to 36 months.This structure has been designed to ensure that recipients can repay the loan in easy installments without the burden of interest, making it especially accessible for low-income and underserved populations. The project is being implemented by the Khyber Pakhtunkhwa Small Industries Development Board (SIDB), with a total allocation of Rs2.007 billion.

Operational execution is being carried out in partnership with Akhuwat Foundation Pakistan, one of the country’s most trusted microfinance institutions.Currently, 36 branches of Akhuwat are functioning in various merged districts, enabling local residents to apply for loans close to home. The scheme caters to a wide range of economic sectors. Beneficiaries have used the funds to start new businesses, expand existing enterprises, purchase necessary equipment and machinery, and invest in agriculture and livestock development.

This multi-sectoral approach ensures that people from all walks of life, particularly those from rural and economically marginalized backgrounds, can benefit from financial inclusion.

Sikandar Shah, Monitoring and Evaluation Officer of the SIDB, recently conducted an official visit to the Akhuwat branch offices located in Bajaur district, including Khar, Inayat Kally, Nawagai, Pishat, Raghan, and Qazafi.

During his visit, he observed the implementation and progress of the Interest-Free Microfinance Scheme for Entrepreneurship Development in the merged areas.The official acknowledged its impact on the socio-economic uplift of the region.

He commended the program as a cornerstone of inclusive development in the newly merged districts, recognizing its role in empowering local communities by providing accessible financial resources to aspiring entrepreneurs.

The initiative not only promotes economic participation at the grassroots level but also reflects the provincial government’s broader vision of fostering self-reliance, employment generation, and sustainable economic growth.

This scheme, through its support to small businesses, agriculture, and livestock sectors, is paving the way for long-term prosperity and financial independence in the region.Local beneficiaries have expressed appreciation for the initiative, noting that the scheme has not only provided them with financial support but also with the confidence and tools needed to build a better future for their families and communities.

Sikandar Shah hoped that with continued implementation and monitoring, the scheme was expected to transform thousands of lives and contribute to the socioeconomic uplift of the merged districts in the coming years.