The National Electric Power Regulatory Authority (NEPRA), in collaboration with Akhuwat Islamic Microfinance (AIM), K-Electric (KE), and Engro Energy, will now offer interest-free microfinance loans (Qarz-e-Hasna) to households and small business owners for the installation of solar photovoltaic (PV) systems.
In this connection, NEPRA, while pursuing its Corporate Social Responsibility (CSR) drive ‘Power with Prosperity’, signed a Memorandum of Understanding (MoU) with the trio on Wednesday to make solar energy more accessible for the unserved and the underserved communities of Pakistan.
It is worth mentioning here that Chairman NEPRA, Tauseef H. Farooqi, launched ‘Power with Prosperity Fund’ earlier this year to initiate mega CSR projects to uplift the underprivileged communities of the country. And, the MoU has been reached at a time when solar power makes less than 2% of the entire power mix. The government intends to boost the share of clean and green energy up to 60% of the total energy mix by 2030, so this initiative by NEPRA is viewed as a remarkable step to provide access to a clean energy source in an affordable manner for homeowners and small businesses.
Under the MoU, KE and Engro Energy will donate a cumulative revolving grant of Rs. 15 million to Akhuwat which will create a dedicated credit pool for the loan borrowers. The loan duration will be up to 36 months with a minimum loan size of Rs. 20,000 with no interest rate.