Qarz-e-Hasana
Qarz-e-Hasana or the microfinance loan facility is aimed at helping the industry raise current access level of 2.5 million people to 5.0 million in the next 5 years.
Eligibility criteria:
Vulnerable rural and urban poor with a poverty score of up to 40.
Focus on women:
It is believed that increased economic participation by women can play a significant role in national development. In an attempt to encourage the same, 50% of loans will be given to female borrowers.
In addition, independent economic activity will empower Pakistani women both socially and in terms of finances.
Geographical spread:
The national outreach of the scheme would not be limited in geographic terms. However, preference would be given to limited and un-served areas.
This is aimed at engaging the population of these areas in greater economic activity and strengthening the process of development there.
Pricing:
It is Qarz-e-Hasana or interest free loan. Therefore, no mark-up would be charged.
Size and number of loans:
250,000 loans of an average amount of Rs.25,000 would be disbursed as part of the scheme.
Government Grant 2013-14:
Rs.3.5 billion have been allocated to the scheme by the Federal Government.
Executing agency:
PPAF would be the central executing agency of the scheme. Enlisted partner organizations and community organizations that have necessary expertise and experience will be engaged in the process.
De-centralization in the process of execution implies greater transparency and increased efficiency.
Recycling:
To make the fund sustainable, borrowers will be encouraged to return the loan. The amount returned will be deposited to the permanent fund available to the community and be used for future lending.
In addition, the process will introduce the borrowers to conversion from being “takers” to “givers” that implies positive social and financial effects.
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Small Business Loans Scheme
Small Business Loans Scheme will focus on unemployed educated youth aspiring to establish new enterprises.
Eligibility criteria:
An individual, male or female, of age not more than 35 years and has an entrepreneurial potential is eligible to apply for the scheme.
Focus on women:
It is believed that increased economic participation by women can play a significant role in national development. In an attempt to encourage the same, 50% of loans will be given to female borrowers.
In addition, independent economic activity will empower Pakistani women both socially and in terms of finances.
Debt-Equity ratio:
A 90:10 debt-equity ratio would be followed with tenor of up to 7 years.
Pricing:
It is fixed at 8% for the borrower. However, the difference in the cost will be paid by the Federal Government at KIBOR+500 bps.
Refinancing:
The State Bank of Pakistan shall explore providing 50% refinance at the risk of participating banks.
Risk mitigation:
Government will share 50% of losses subject to a maximum of 10% of the loan amount.
Number of Loans:
100,000 loans would be disbursed under the scheme.
Size of Loan:
The amount of each loan can range from Rs.0.5 million to Rs 2.0 million.
Average Loan Size:
The average loan size would be Rs.1.25 million.
Allocation in Budget 2013-14:
Rs.5 billion have been allocated in the budget for the financial year 2013-2014.
Executing agency:
In the initial phase of the scheme, the National Bank of Punjab and First Women Bank would act as the executing agencies of the scheme under the guidance and supervision of the State Bank of Pakistan. Other Banks will be encouraged to join.
Sectors and Products:
The scheme encompasses all sectors of the economy. Standardized schemes/projects/ undertakings will be designed by SMEDA. Additionally, projects designed by private sector service providers and individuals are included in the scope of the scheme.
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Youth Training Scheme
Under this scheme, young individuals with 16 years of education from recognized institutions will be provided on-the-job- training/internships at private and public sector offices. It is aimed that professional development would equip them with abilities to get job opportunities in the country or abroad.
Eligibility criteria:
Graduates with minimum 16 years of education from HEC approved educational institutions and of age not more than 25 years (26 for less-developed areas) are eligible to apply.
Geographical spread:
The geographic outreach of the scheme is not restricted. Individuals fulfilling the eligibility criteria can apply from across Pakistan.
Stipend:
A monthly stipend of Rs.10,000 shall be paid to each selected applicant for a period of 12 months.
Number of interns:
50,000 interns would be hired under the operations of the scheme.
Budget Allocation FY 2013-14:
A budget of Rs.4.0 billion has been allocated to the scheme for the financial year 2013-2014.
Executing agency:
A top class management consulting firm/university from the private sector in collaboration with the Government will be responsible for the design, placement of internees and their periodic evaluation.
Partnership with the private sector would increase financial transparence, ensure selection on merit and produce more efficient outcomes/results.
Training program:
Focal points in each private and public office will be responsible for ensuring effective use of the internees’ services.
Areas of training:
In addition to government offices on local, provincial and federal levels, all leading firms from the private and development sector will be offered services of the internees.
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Youth Skills Development Scheme
The Youth Skills Development Scheme is aimed at providing vocational training to unemployed young individuals for acquiring productive skills for gainful employment.
Eligibility criteria:
Young men and women, who have received middle level education (8th Grade) and are maximum 25 years of age are eligible beneficiaries of the scheme.
Geographical spread:
The scheme has nationwide outreach. It is believed that outcome of such schemes shall not be restricted by factors such as provincial or regional affiliation.
Fees support:
The government would support a fee equivalent to or less than Rs.3,000 per month for a duration of six months
Stipend:
A monthly stipend of Rs.2,000 for six months would be paid to each beneficiary of the scheme.
Number of Trainees:
As estimated, 25,000 individuals will benefit from the scheme in the capacity of ‘trainees’.
Budget Allocation FY 2013-14:
Rs.800 Million have been allocated to the scheme in the Financial Year 2013-2014 Budget.
Executing agency:
NAVTTC/Ministry of Education and Trainings would be the central executing agency of the scheme. Provincial TEVTAs and the Federal Government Skills Training Institutes that are to work in collaboration with the central executing agency, will be responsible for designing the program and the final evaluation form.
Training program:
Standardized training modules of trades with a global demand will be offered. The duration of each will be six months.
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Provision of Laptops
The Prime Minister’s Scheme for Provision of Laptops is an attempt to enhance the scope of research and quality education in the country and increase the access to information technology.
Eligibility criteria
Students, both male and female, registered in an HEC approved educational institution are eligible for the scheme. All masters/doctoral students and 50% under-graduate students will get the laptop.
Geographical Spread
The scheme has nationwide outreach; students registered in an HEC approved institute from across Pakistan can benefit from the scheme.
Cost per laptop
As an approximate, each laptop will be worth Rs.40,000.
Total Number
A total of 100,000 students from across Pakistan will be awarded a laptop.
Budget Allocation FY 2013-14
The scheme has an allocated budget of Rs.4.0 billion for the financial year 2013-2014.
Executing Agency
The Higher Education Commission (HEC)/Ministry of Education and Trainings will be the central executing agency for the scheme.
The Government of the Punjab has successfully implemented the scheme to provide free laptops to students in the past. Therefore, the pattern and parameters adopted in Punjab shall be replicated in the design and implementation of the scheme.
Local Manufacturing
The Higher Education Commission is in negotiation with manufacturers for local assembly of laptop computers. This would increase the initiative’s feasibility with reference to a growth in the popularity of this scheme.
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Fee Embursement for Poor
With the aim of encouraging pursuit of higher education, the scheme will provide scholarships for post graduate degrees (MA, MSc or higher level) to students, male and female, belonging to remote and under-privileged areas of the country.
The tuition fee of the program selected by the scholarship holder will be financed under this scheme and paid directly to the relevant university.
Eligibility Criteria
All students, male and female, registered in a Masters/Ph.D program in an HEC approved public sector educational institution are eligible to apply to the scheme.
Geographical Spread
Students domiciled in interior Sindh, Southern Punjab (Divisions of Multan, Bahawalpur and DG Khan), Balochistan, less developed areas of KP (Malakand, Kohistan and DI Khan), GB and FATA are eligible to apply for the scheme.
Average Tuition Fees
The average annual tuition fee to be financed under the scheme is Rs.40,000.
Total Number
A total of 30,000 students will receive scholarships.
Budget Allocation FY 2013-14
An annual budget of Rs.1.2 Billion has been allocated to the scheme for the financial year 2013-2014.
Executing agency
Higher Education Commission (HEC) would be the executing agency for the scheme. The Ministry of Education and Trainings will collaborate and be responsible for its implementation on the ground.
