Prime Minister’s Youth loan scheme


In a total mayhem of terrorism, inflation and real economic crises, a youth loan scheme coupled with metro bus projects are exactly the things Pakistan needs.

What is at stake is not the millions that have been earmarked for the loan scheme. Pakistani governments, specifically Sharif’s, generally have an unenviable record of wasting huge sums of public money on fanciful economic growth projects.

Besides, young people do not merely need capital, but also the knowledge of how they can turn their raw ideas into sound and profitable businesses. They will need to be given a helping hand in establishing a basic enterprise infrastructure, as well as in marketing and sales. That means creating institutions that overcome much market-related inefficiency.

Talking from banks’ perspective, in an environment where banks appear hesitant in lending to the private sector, sovereign guarantees might persuade them to take a step ahead and reap the risky avenues. Besides, the government hasn’t highlighted any recovery mechanism of loans or penalties that could be imposed in the case of late payments. There is no clarity on what will be the success parameters of the scheme and who will monitor the appropriate usage of the disbursed amount.

Bushra
2222 hours
Friday 24 January

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