PTI-led govt handed out Rs. 7.6 billion in interest-free loans under Kamyab Pakistan Programme

Imran Khan also launched a programme to disburse interest-free loans to help people start their business and build homes.

PTI-led govt handed out Rs. 7.6 billion in interest-free loans, only 15% of the set target

Under the Kamyab Pakistan Programme, the PTI government handed out Rs. 7.6 billion in interest-free loans. This was only 15% of the revised target, the banks adopted a gradual strategy due to the political situation of the country.

A week prior to the end of PTI government, the institutions distributed Rs. 7.6 billion among 48,237 beneficiaries. This figure is relatively lower than what the former Prime Minister wanted to distribute amongst low middle and poor income groups.

Imran Khan also launched a programme to disburse interest-free loans to help people start their business and build homes. In the beginning, the former wanted to give Rs. 1.4 trillion in loans to millions of beneficiaries in three years. However, the cabinet approved only Rs. 228 billion, which it wanted to disburse amongst 738,000 people.

The programme target was set at Rs. 10 billion a month, but the actual average disbursement reached only Rs. 1.5 billion, which was lower than the revised target. A microfinance institution, Akhuwat disbursed Rs. 4.8 billion in loans among more than 27,000 people. Meanwhile, disbursement by the NRSP was Rs. 2.8 billion, given to 20,909 clients.

Partner banks informed the microfinance institutions to ‘go slow’ and have almost stopped the disbursements due to change in government. The institution on the other hand asked the Ministry of Finance to allow Rs. 10 billion more to meet commitments.

However, the Ministry has not yet officially issued instructions to banks about how they will roll back the programme. The head of a partner institute told a news source that the programme will be reviewed by the new government.

Although the PTI-led government disbursed Rs. 7.6 billion among those who need it the most, the SBP also disbursed Rs. 426 billion to the 678 richest people. The Rs. 426 billion increased inflation and also devalued rupee when industrialists opened letters of credit to import machinery under the TERF scheme.

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