Nawaz assures transparency in Youth Loan Scheme

Jan 04, 2014| Courtesy by : dawn.com

HYDERABAD: Prime Minister Nawaz Sharif on Friday assured that disbursements under Youth Business Loan Scheme would be made transparently and the violators of merit would be dealt strictly.

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– Photo by Online

“Neither me nor any authority in the National Bank of Pakistan (NBP) can favour anyone to get loan under this scheme. Even I do not have such powers,” he said while addressing the launching ceremony of the scheme here.

Federal Minister for Information, Broadcasting and National Heritage Senator Pervaiz Rashid and Sindh Chief Minister Qaim Ali Shah and other senior government officials were also present on the occasion.

Earlier on his arrival, the prime minister was received by the Sindh chief minister.

Describing it as social cancer, PM Sharif expressed the government’s resolve to curb favouritism, vowing to enforce the merit policy at all costs.

He said he had envisioned the loan scheme during his previous tenure but it could not materialise as the government could not complete its term.

The loan scheme would help boost the country’s GDP (gross domestic product) and support the families of borrowers as well as of those allied with their businesses, he said.

Sharif claimed that recovery rate of the Yellow Cab Scheme during his last tenure was almost 99 per cent and hoped that the youngsters would also pay back this loan honestly.

Conditions for guarantors in the Loan Scheme had been eased keeping in view the difficulties faced by the youth, he said.

Now anyone, including the blood relatives having net worth of 1.5 times of the loan amount could give the guarantee. Moreover, any government officer of Grade-15 with eight or more years of remaining service could be a guarantor, he added.

He said that even more than one person with cumulative net worth of more than 1.5 times of the loan amount could give collective guarantees for a single applicant. Even, the applicant having required net worth could give his own guarantee.

The applicant could have his bank account in any bank, including National Bank of Pakistan, said the premier.

“We have to trust the youth and give them financial independence to play a positive role in the national economy.”

The prime minister said in the past, loans were given only to influential and entities, while the small borrowers were neglected.

“We have decided to give loans to small borrowers in order to give benefit to the skilled youth and lower strata of the society. This is a programme launched for the youth, who are the builders of Pakistan,” he said.

Later, Prime Minister Sharif met the applicants and inquired about their plans after getting the loan.

Speaking about infrastructure projects in Sindh, he said the government had a comprehensive plan to build road network in Hyderabad and Karachi.

The Japanese government had shown interest in Karachi Circular Railway Project, which would be initiated soon, the prime minister added.

dawn.com