The government is considering the possibility of providing extra cash support to those consumers facing a small tariff increase to mitigate their expenditure on electricity. Sources told Business Recorder that the proposal is under consideration for electricity consumers using 200 to 300 units per month as consumers using up to 200 units are to be covered by the subsidy.
Sources said Prime Minister Nawaz Sharif in his address to the nation subsequent to the approval of Energy Policy would share tough decisions being taken by the government to deal with the challenge of electricity crisis in the country. The prime minister also reportedly plans to inform the nation that the government is cognisant of their problems especially with respect to high cost of electricity and is evaluating the possibility of an extra cash support for those who face a small tariff increase to mitigate their expenditure on electricity notably those using 200 to 300 units per month.
The material being prepared by the concerned ministries for the prime minister's speech would include some measures announced in the budget for 2013-14 to highlight some of the schemes. Notable amongst these schemed would be Microfinance Scheme, Youth Training Programme, Skills Development Programme, Small Business Loans Scheme, Scheme for Provision of Laptop and Income Support Programme envisaged by the government in line with PML (N) manifesto promises.
The prime minister is expected to begin from the Microfinance Scheme announced by the finance minister in the budget speech which envisages enabling men and women to undertake micro enterprise activities; Rs 3 billion was allocated to launch a scheme of Qarz-e-Hasna (loans without mark-up) and at least 50 percent of these loans will go to women.
The Youth Training Programme would also be highlighted in the Prime Minister's speech and he is expected to state that as per his promise during election campaign, all those young educated youth who have completed a 16-year degree programme would be eligible to join the one-year Youth Training Programme to work in a government department on a stipend of Rs 10,000 per month. This programme will enable these youth to gain experience and improve their chances to find a job commensurate with their qualifications.
He would also speak about Skills Development Programme that is being initiated to impart training to 25,000 youth up to the age of 25 with minimum qualification of middle school. National Vocational and Technical Training Authority (NAVTEC) will manage the programme in collaboration with provincial TEVTA authorities. Six months training will be given for which fee will be paid by the government. Emphasis will be placed on such trades as are in demand abroad or will enable the graduates to become self-employed.
Nawaz Sharif is also going to mention the government's decision to initiate small Business Loans Scheme with a view to enabling the youth to start their own business. Small business loans will be made available through the banking system. Under the scheme loans ranging from Rs 100,000 to Rs 2,000,000 will be available at a mark-up cost of 8 percent. The remaining cost will be borne by the government. In the first year of the scheme, 50,000 loans will be offered. The scheme will be strengthened in light of experience gained in first year of operation.
The prime minister's speech would also cover scheme for provision of laptop and the decision for provision of a laptop to distinguished students pursuing higher education. All students pursuing a degree programme from one of the HEC recognised universities or institutions and meeting merit criteria to be developed by HEC would be eligible to get a laptop. The HEC will announce the details of the scheme shortly.
Another measure likely to be mentioned by the Prime Minister during his speech is fee Reimbursement Scheme for Less Developed Areas. The bright students from less developed areas would be provided tuition fee support while pursuing higher education - at Master's and Doctorate levels. Presently, it is available to students from Balochistan, Fata, and Gilgit-Baltistan. There is no reason why this support should not be extended to other less developed areas such as those of Interior Sindh and Multan, Bahawalpur and DG Khan Divisions of South Punjab, which are equally less developed, the prime minister would argue. Accordingly, students from these areas pursuing higher education on merit will also be eligible for tuition fee support. The prime minister would also highlight the income support programme's allocation of Rs 75 billion in the budget 2013-14 - nearly double the amount of Rs 40 billion disbursed last year.
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