The government has granted direct access to the State Bank of Pakistan (SBP) for making payment arrangements to beneficiaries of the Kamyab Pakistan Program through various commercial banks.
According to a circular issued by Finance Division, the federal cabinet has approved exemption of Rule 3(2) of Cash Management and Treasury Single Account Rules, 2020 to allow the direct debit authority to SBP beyond inevitable circumstances for payments under the Kamyab Pakistan Programme.
The government has approved the Kamyab Pakistan program, which consists of five components, namely:
- Kamyab Karobar
- Kamyab Kissan
- Naya Pakistan Low-cost Housing
- Kamyab Hunarmand
- Sahatmand Pakistan
Under the first three components, micro-loans shall be distributed among persons registered with the National Socio-Economic Registry. These three components will be treated as new initiatives independent of Prime Minister’s Kamyab Jawan-youth Entrepreneurship Scheme (PMKJYES) and Government Markup Subsidy Scheme (GMSS).
The last two components of the program are integrated with the government’s existing programs.
The Kamyab Pakistan Program is aimed at integrating with the government’s ongoing skill development program for educational and vocational training. Accordingly, it is being envisioned that these trained citizens will also have access to the financing facility, and this collaboration will be rebranded as Kamyab Hunarmand.
Under “Sehatmand Pakistan”, it will be mandatory for anybody availing loans under the program to obtain a “Sehat Insaaf card” if the same facility is available in his/her area.
One loan under each Kamyab Pakistan loans category, i.e., Kamyab Karobar, Kamyab Kissan, and Housing, shall be permissible concurrently with the maximum exposure capped at Rs. 2.85 million (put together) per family. Applicants will be able to check the eligibility for the schemes under the program, which could be viewed here:
Govt Selection Process For Microfinance Providers
The government shall only select Wholesale Lenders (WLs) through a competitive bidding process. The WLs will select Microfinance Providers (MFPs) without any direct role of the Finance Division.
The government shall pay the difference of “Customer Rate” and “Bank Rate” as a mark-up subsidy. The bank rate shall be determined through a competitive bidding process by ensuring transparency and compliance of the Public Procurement Regulatory Authority (PPRA) Framework in letter and spirit. The government will provide two guarantees
- 10 percent First Loss Guarantee to MFPs/Executing Agencies
- 50 percent guarantee to WLs on Pari-Passu Basis (equal loss sharing basis or pro-rata basis);
All commercial banks (conventional and Islamic), DFIs, as regulated by the State Bank of Pakistan and PMRC, shall be eligible to participate in the bidding.
The program shall be initially offered in Balochistan, Khyber Pakhtunkhwa, Gilgit Baltistan, Azad Jammu, and Kashmir and the poorest districts of Sindh and Punjab, and it will be extended to the entire country on a subsequent basis.