ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved Rs 10 billion Technical Supplementary Grant (TSG) for the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMB&ALS).
The ECC was informed through a summary by the Finance Division during its meeting held on July 24, 2023 that the Ministry of Industries and Production has surrendered Rs 10 billion from the Prime Minister’s Youth Programme for Small Loans (PMYPSL) in favour of Prime Minister’s Business and Agriculture Loan Scheme (PMB&ALS).
Finance Division further stated that a new initiative of Prime Minister’s Youth Programme for small Loans was designed to disburse small loans to priority sectors including, but not limited to, cutlery/ crockery, agro processing, agri implements, cold chain development, gemstones, seafood, meat processing, information technology and mining sectors.
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The implementation of the Initiative was assigned to Ministry of Industries and Production (MoIP) with a budget allocation of Rs 10 billion in current fiscal year for covering mark-up subsidy and risk coverage.
Subsequently, Ministry of Industries/ SMEDA developed a PC-I for implementation of the initiative and same was taken to Central Development Working Party (DWP)/ Executive Committee of the National Economic Council (ECNEC).
In a meeting of the CDWP dated June 26, 2023, it was decided that MoIP was not ready to defend the project, and the Ministry had already discussed with Finance Division and Prime Minister Office (PMO) to execute the project by changing mode of financing from development to the recurring side.
Therefore, the project may be executed by the Finance Division and the same stance was endorsed in a review meeting of the PMYPSL held under the chairmanship of adviser to PM on establishment.
Consequently, MoIP surrendered the allocated funds of Rs 10 billion for the new/ unapproved project PMYPSL in favour of PMYB&ALS, the ECC was told.
The ECC was further informed that the Planning Division supported the change of mode from public sector development project to recurrent, and suggested to the Finance Division to obtain TSG of required amount surrendered from PMYPSL in favour of prime minister’s YB&ALS, under non-development budget.
Thus, the ECC was requested that TSG of Rs 10 billion (surrendered by the MoIP may be granted to Finance Division in favour of to be utilized under the already running prime minister youth business and agriculture loan scheme.
Copyright Business Recorder, 2023