PESHAWAR, Nov 7: The Khyber Pakhtunkhwa government Thursday launched its multi billion rupees poverty reduction and employment generation “Khud Kafalat Scheme” to overcome rising unemployment in the province.

According to an official handout issued here, chief minister Khyber Pakhtunkhwa formally launched the scheme in a ceremony held at the CM Secretariat Peshawar. On this occasion, a memorandum of understanding (MoU) was also signed between the Bank of Khyber and the Provincial Industry and Technical Education department.

Acting Managing Director, BoK, Imran Samad and Secretary Industry Mohammad Sajid Jadoon signed the MoU in the presence of the Chief Minister Khyber Pakhtunkhwa Pervez Khattak, provincial ministers Shah Farman and Bakht Bedar Khan, and high ups of the BoK and Industry department.

The CM said an amount of Rs2 billion had been allocated for the scheme to give soft loans to skilled youth. Under the MoU BoK will carry out the financial aspects of the scheme in terms of funds management;

loan disbursement and recovery in close collaboration with the provincial government.

The chief minister termed the scheme as a revolutionary step of the industries and technical education department which will contribute to the socio-economic development, income and employment generation of the province adding that the scheme will help a great deal to overcome the issue of unemployment and poverty in the province by providing self employment opportunities to the skilled , educated and jobless young people.

On this occasion, the CM was told that under the scheme mark up free micro loans will be given to the eligible persons, which included unemployed youth, small traders, female entrepreneurs, and new entrants having skill but not having sufficient finances to start their business, artisans, skilled workers and low income entrepreneurs.

The size of loan under the scheme ranges from Rs50,000 to Rs200,000 and permanent residents of Khyber Pakhtunkhwa holding valid computerised national identity card and having age limit of 18 to 50 years can apply for loan.

Applicants who have already availed Wasila-i-Haq facility through Benazir Income Support Program or any other such scheme, loaner or defaulters from any bank or any other institution, employees of government/semi-government or autonomous bodies and regular students are not eligible for loans under the scheme.

The maximum tenure of repaying the loan will be three years. The scheme will initially be offered for three year which the government may extend to the permanent feature of the provincial economy.