Prime Minister Imran Khan launched the much-anticipated Kamyab Pakistan Program (KPP) on Monday (4th October), which will provide Rs1.4 trillion in soft loans to 3.7 million families across the country.
The program will have five components:
- Famers will get interest-free loans under the Kamyab Kissan program.
- Financing of up to Rs500,000 will be made for setting up a business under the Kamyab Karobar program.
- Financing on easy installments will be extended for construction of houses under the Sasta Ghar scheme.
- Skilled-based scholarship scheme.
- Sehat Insaf Card with the KPP.
It reported Finance Minister Shaukat Tarin as adding that the KPP will be a major government initiative to eradicate poverty by empowering the disadvantaged parts of society and assisting them in changing their lives.
According to the press release, the program would also connect low-income groups with banks through microfinance institutions, reflecting the state’s obligation to its poorer portions of society. In addition, he stated that the initiative aimed to assist individuals with housing projects, skill development, health cards, and interest-free financing for companies and agricultural services.
Furthermore, Shaukat Tarin stated that Rs 300-400 billion interest-free loans would be distributed during the current fiscal year and that the money had also been authorized for interest-free loan subsidies.
State Bank Governor Reza Baqir is said to have praised KPP’s goals, particularly its bottom-up strategy, at a recent meeting. He did, however, advise improved burden-sharing between banks and taxpayers, and suggested that the government guarantee to commercial banks be limited to 50% of banks’ lending, as established by the cabinet’s Economic Coordination Committee.
He went on to say that this would help to ensure that banks were invested in the program, that they would undertake the necessary credit checks before lending, and that the potential expense to taxpayers from the government guarantees would be reduced.
Although the initiative was based on Ehsaas Program data, Special Assistant to the Prime Minister (SAPM) on Social Protection and Poverty Alleviation Dr. Sania Nishtar had allegedly pointed out that the proposal was not routed through the Poverty Alleviation and Social Safety Division.
To prevent duplication, SAPM recommends that loans be offered solely to graduate Ehsaas beneficiaries and that Ehsaas grants be discontinued for those who obtain loans. She noted that the summary stated that people with an annual income of less than Rs50,000 would be eligible, but that this would apply to nearly 30 million families.
She stated that a precise definition of how three million people would be chosen from a pool of 30 million prospective beneficiaries was required. The summary also said that the bottom 4.5 million people would be prioritized.
Dr. Sania, on the matter of procurement, stated that because the scheme included a subsidy and a charge, it would have been ideal to go via open competitive bidding under the new PPRA Rule 16 (A). She also indicated that, in the absence of organizational bodies responsible for loan stewardship, such as PPAF and PMIC, there was no need to entrust project execution to the Finance Division’s project management unit.
PM Imran Khan
Prime Minister Imran Khan at the launch ceremony of Kamyab Pakistan said, “Justice and humanity are fundamental components of any civilization.”
In addition, he also said, “Inequality causes society to decline.”
Imran Khan said, “Successful Pakistan program will improve the life of common man.”
