Punjab Launches Rs. 2 Lac Interest-Free Loans for Released Prisoners

The Punjab government has launched the “Naya Aghaz” program to help released prisoners become financially independent by offering interest-free business loans of up to Rs. 200,000.

Under the initiative, deserving inmates will be able to use the vocational skills learned during imprisonment to start their own businesses after release.

A memorandum of understanding was signed between the Punjab Prisons Department, the Home Department, and Akhuwat Islamic Microfinance.

Akhuwat has initially set up a revolving fund of Rs. 5 million for the program. The loans will be repaid in 36 equal monthly installments, while the recovered amount will be used to support more eligible prisoners.

Special Secretary Home Zainab Khan said the initiative aims to turn vocational training into employment opportunities. Under the Skilled Prisoner Programme, inmates across Punjab’s prisons are being trained in 23 trades, along with various certified vocational courses.

The Prisons Department will begin screening inmates three months before their release and recommend eligible candidates based on their conduct and completed training.

Rana Manan Khan, chairman of the Chief Minister’s Task Force on Prisons, said the program would help former prisoners become self-reliant, live with dignity, and successfully reintegrate into society. He added that the government was working to transform prisons into genuine rehabilitation centers.

Akhuwat Foundation Chairman Dr. Amjad Saqib said all assistance would be provided without interest under the Qarz-i-Hasna principle. He added that Akhuwat has so far distributed Rs. 500 billion in interest-free loans to around 4.5 million families.

Inspector General of Prisons Mian Salik Jalal said more than 28,000 inmates have been trained and certified through Technical Education and Vocational Training Authority and Punjab Vocational Training Council centers operating in prisons. Another 6,500 prisoners are currently receiving training.

He added that 74 psychologists are working in Punjab’s prisons to support the mental and social rehabilitation of inmates.

Prisoners included on the National Counter Terrorism Authority or United Nations Security Council lists will not be eligible for the loans.