Interest-Free Micro-Lending Scheme for small-scale entrepreneurs in FATA
|Total Cost:||500 Million|
|Commencement Date:||October, 2015|
|Completion Date:||October, 2020|
|Project Status:||On Going|
The “Interest Free Micro-Lending Activities to Support Small Scale Entrepreneurs in FATA” has been initiated with an initial allocation of Rs. 500 million for a period of five years on the directives of the Governor Khyber Pakhtunkhwa. FATA Secretariat entrusted the FATA Development Authority with the task to execute the scheme through a Service Provider Organization (SPO).FATA Development Authority Selected Akhuwat as SPO through open Competition for the scheme. Despite development in the small and medium enterprises sector, Federally Administered Tribal Areas remained neglected or ignored altogether even by the small and medium enterprise banks. Informal credit is the only mode of getting credit in FATA. The micro-finance sector in Pakistan has picked up in the recent years. A quarterly report of Micro Watch for April-June 2015 on micro-finance outreach in Pakistan shows a remarkable progress in the micro-credit sector in Pakistan, except FATA where the micro-credit portfolio remained zero. The socio-economic divide between FATA and rest of the country is wide and the micro-lending initiative is an effort to initiate small scale business activities in FATA to bridge the development divide. The scheme will help generate small scale business activities, facilitate the existing small entrepreneurs, develop skilled human resource base, initiate interest free micro-crediting, employ youth in constructive activities, enhance the income of the households, improve the standard of living of the local people and provide equal opportunity to women entrepreneurs The interest free loans, up to maximum of PKR 50,000 will be given by Akhuwat to the un-employed and skilled persons after evaluating business proposals of the applicants for establishment of a new business or expansion of an existing one.
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