Govt to give loans for setting up Utility Stores’ franchises

ISLAMABAD: Despite failure to accelerate disbursement of loans under PM’s Kamyab Jawan Programme, the government has now decided to extend loans for establishing Utility Stores of Pakistan franchises across the country.

For phase-I of PM’s Kamyab Jawan Programme, different banks have so far approved Rs6 billion loans but disbursement of these loans stood at just Rs600 million. However, the government is planning for launching phase-II where the loan amount will be increased substantially.

According to official announcement, Minister for Planning, Development and Special Initiatives Asad Umar chaired a meeting on PM's Kamyab Jawan Programme (PMKJP) for establishing utility store franchises across Pakistan.

The meeting was attended by Hammad Azhar, Minister for Industries, Muhammad Usman Dar, SAPM on Youth Affairs, MD Utility Stores and senior officials of the government.

Mr Dar informed the meeting that about 250,000 applicants who applied for loans under PM Kamyab Jawan Programme are interested in opening up retail stores.

He said that loans under PMKJP can be extended to the already established franchises and also for setting up new franchises under the umbrella of Utility Stores Corporation.

Planning Minister Asad Umar said that Phase-II of PM Kamyab Jawan Programme in collaboration with Ministry of Industries will give loans for establishment of Utility Stores' franchises. He said that lending to such franchises has the benefit of ensuring that loans are secured and these stores would effectively play the role of market stabilisers. He further said that existence of Enterprise Resource Planning (ERP) is a prerequisite for successfully monitoring and running such stores.

Hammad Azhar said that his Ministry would assess the proposed plan of lending to about 1,000 operational franchises under USC and also work for presenting model for establishing new stores. He added that lending for opening franchises would be scaled up after successfully launching a pilot project.

The meeting agreed to finalise loans for such scheme under PM Kamyab Jawan programme after deliberations on the proposal by all the stakeholders.