Small businesses to get $75-million funds in Pakistan. Interested to set up some small? Don’t have resources? Don’t worry, some opportunities are going to set to help you. And the good news for you is that $75-million fund for the borrowers from the State Bank of Pakistan has been planned for the people interested in setting up small businesses.
Liquidity constraints being currently faced by the microfinance sector will be eased with this credit line.
The step taken by the government is expected to attract people to vote for the ruling Pakistan Muslim League – Nawaz in the upcoming general elections.
Plans have been made to disburse rupees equivalent of $75 million to microfinance banks and microfinance institutions. In turn, thus disbursement will provide credit lines to eligible small borrowers including micro-entrepreneurs.
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In May 2015, Pakistan launched the National Financial Inclusion Strategy (NFIS) to set a broader vision for achieving universal financial inclusion in the country. Under this strategy, provision of financial access for 50% of the adult population by 2020 is planned.
The Finance Division (in order to achieve the targets laid out in the NFIS) had designed the Financial Inclusion and Infrastructure Project under the Public Sector Development Programme (PSDP) & approved by the Executive Committee of National Economic Council (Ecnec) on October 6, 2017.
This project was planned to be financed through a 5-year financial intermediary loan of $137 million provided by the World Bank.
A meeting held on 21 March where the cabinet briefed that the rupee equivalent of $75 million would be disbursed to microfinance banks and microfinance institutions through a fund that is going to be established at the State Bank.
This fund will be used to provide financing to eligible microfinance borrowers including micro-entrepreneurs.
The cabinet had been told that in terms of Section 17(194) of the State Bank of Pakistan Act 1956, the federal government got empowered for the establishment of the fund for the purposes of this act or for any specified purposes as the federal government may notify in this behalf.
A summary was submitted to the cabinet for the establishment of the fund at the central bank.
The cabinet (after comprehensive discussions) gave approval to the proposal of establishing the fund for microfinance banks and microfinance institutions.
