Govt to guarantee 50% of KPP loans on risk sharing basis
ISLAMABAD: The federal government will provide a guarantee of 50 per cent of each loan given through the Kamyab Pakistan Programme on risk sharing basis with the banks.
Federal Minister for Finance and Revenue Shaukat Tarin presided over the joint meeting of the Steering Committee and the Advisory Board of the Kamyab Pakistan Programme at the Finance Division on Friday.
During the meeting, the programme design was reviewed and contours of the KPP were finalised in consultation with all the relevant stakeholders.
After extensive discussion, it was decided that a robust bidding process will be undertaken for the selection of wholesale lenders (banks) who, in turn, will exclusively engage with the executing agencies, (microfinance providers).
There will be a quarterly performance review of the wholesale lenders with reference to disbursement of funds. The government will extend guarantee to the wholesale banks up to 50 per cent on a risk sharing basis.
This will ensure transparency and due diligence in evaluating the performance of the wholesale lenders with reference to disbursement of funds.
Another landmark feature is the formation of KPP portal called Kamyab Pakistan Information System (KPIS). There will be a toll-free number, which will be integrating KPIS through telecos via the National transmission Company (NTC). The portal will be integrated with the Ehsaas data and Nadra for verification of beneficiaries eligibility to facilitate the executing agencies (microfinance providers) for finalising the financing modalities in a most efficient and seamless manner.
Finance Minister Tarin said that the Kamyab Pakistan Programme is a flagship initiative of the government, which is designed to transform the lives of the marginalised segments of the society and ensure their financial empowerment.
This is the first programme of its kind in Pakistan‘s history; wherein, the banks are being connected to the lowest income segment through microfinance institutions. Therefore utmost care is being taken before the launch of KPP.
The underlying rationale is to ensure all the stakeholders are onboard for the ultimate success of the programme, he said, adding that the programme will be launched in phases to cover all the areas of Pakistan effectively.
During the first phase, Khyber-Pakhtunkhwa, Balochistan and the poorest of the poor districts of Punjab, Sindh, Gilgit-Baltistan and Azad Jammu and Kashmir will be covered.
The revised proposal will be submitted before the Economic Coordination Committee (ECC) of the Cabinet for due deliberation and requisite approval for onward submission before the Federal Cabinet.
Special Assistant to the Prime Minister on Youth Affairs Usman Dar said that the Kamyab Pakistan Programme will be of great significance in creating income generation opportunities for the talented youth and will go a long way in breaking the vicious cycle of poverty in the country.
Among others, SBP deputy governor Sima Kamil, SECP chairman Aamir Khan, Akhuwat chairman Dr Amjad Saqib, NRSP CEO Dr Rashid Bajwa, RSPN chairman Shoaib Sultan, KPP convener Zafar Masud, PBA chairman Muhammad Aurangzeb, Meezan Bank president Irfan Siddiqui, Bank Alfalah president Atif Bajwa and other senior officials participated in the meeting.
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