Karachi, April 9, 2019: The Pakistan Tehreek-e-Insaf (PTI) government has announced to launch SME Program-“Kamyab Jawan” for new job opportunities.
In order to generate more job opportunities for the youth, the government has launched a new program-the Kamyab Jawan program.
According to a roadmap for stability, growth and productive employment, announced by Federal Finance Minister Asad Umer, under this program, the National Bank of Pakistan (NBP), Bank of Punjab (BoP) and Bank of Khyber (BoK) will provide low-cost loans to the youth (aged between 21-45 years) for establishing of small businesses enterprises.
These loans will be classified in three tiers. Tier I: Loans between Rs 100,000 and 0.5 million, with a debt-equity ratio 90:10 at interest rate of 6 percent. The government will pay the difference between the applied interest rate and KIBOR + 500 bps.
Tier II: Loans between Rs 0.5 and 10 million; with a debt equity ratio of 80:20 and carrying an interest rate of 8 percent. The government will pay the difference between the applied interest rate and KIBOR + 400 bps.
Tier III: Loans between Rs 10 and 25 million; with a debt equity ratio defined by bank’s lending policy; and carrying an interest rate of 9 percent. The government will pay the difference between the applied interest rate and KIBOR + 400 bps.
Over the next 5 years, it is estimated, that 138 thousand youth will benefit from Kamyab Jawan program, with banks disbursing a cumulative sum of Rs 200 billion.