KP govt launches interest-free loan scheme for erstwhile Fata
Business
The programme provides interest-free loans ranging from Rs25,000 to Rs75,000
PESHAWAR (APP) - The Khyber Pakhtunkhwa government has launched a long-term interest-free microfinance scheme for entrepreneurs to support small businesses and improve the livelihoods in the merged districts.
A press release on Thursday, said the interest-free loan, which spans 13 years (2021–2034), has already made substantial progress, with 66,557 individuals befitting from the programme so far, while 22,152 more are currently receiving financial support under the scheme.
The programme provides interest-free loans ranging from Rs25,000 to Rs75,000, with a flexible repayment period of up to 36 months. This structure has been designed to ensure that recipients can repay the loan in easy installments without the burden of interest, making it especially accessible for low-income and underprivileged populations.
The project is being implemented by the Khyber Pakhtunkhwa Small Industries Development Board (SIDB), with a total allocation of Rs2.007 billion.
Operational execution is being carried out in partnership with Akhuwat Foundation Pakistan, one of the country’s most trusted microfinance institutions.
Currently, 36 branches of Akhuwat are functioning in various merged districts, enabling local residents to apply for loans close to home.
The scheme caters to a wide range of economic sectors. Beneficiaries have used the funds to start new businesses, expand existing enterprises, purchase necessary equipment and machinery, and invest in agriculture and livestock development.
This multi-sectoral approach ensures that people from all walks of life, particularly those from rural and economically marginalized backgrounds, can benefit from financial inclusion.
Sikandar Shah, Monitoring and Evaluation Officer of the SIDB, recently conducted an official visit to the Akhuwat branch offices located in Bajaur district, DI Khan and Lakki Marwat.
