Rs2b interest-free loans to be given to poor, unemployed youth

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The Sindh government under pro-poor economic revival package has decided to launch `Chief Minister self-employment scheme to advance interest free small loans to the people.

This decision was taken in the cabinet meeting held here under the chairmanship of Sindh Chief Minister Murad Ali Shah at CM House.

The meeting was attended by all the provincial ministers, advisors, chief Secretary Mumtaz Shah and concerned secretaries.

The chief minister said that the Covid-19 situation has turned a large number of people either unemployed or under-employed.

“this is the time to introduce a pro-poor economic package under which interest free small loans may be offered to the people to start their small business or strengthen their on-going business activities,” he said and added he could spare Rs2 billion during current financial year to start with.

The cabinet members after thorough discussions and deliberations approved the proposal and named it `Chief Minister Self-employment Scheme.

They unanimously voiced to enhance its budgetary allocations so that a large number of populations could take benefit out of it.

The chief minister said that a mechanism entitlement of loan, method of disbursement, mode of recovery was needed to be evolved.

He constituted a committee under chairman P&D Mohammad Waseem, with secretary finance and secretary law as its members to work out details for the programme.

The meeting was told that an NGO Akhwat Islamic Microfinance (AIM) was advancing interest free loans to poor people so that they could start their small businesses. Their recovery rate was 100 percent

. The NGO was called, and its representative gave a detailed briefing to the cabinet and they tasked the chairman P&D to meet with them and share their model with the cabinet in its next meeting to be held before the holy month of Ramazan.