As part of the first-of-its-kind drive, Punjab CM Maryam Nawaz Sharif has introduced two most extensive packages to give impetus to trade and commerce activities in the province. These interest-free business loan programs mainly target to empower Small and Medium enterprises, as well as to encourage people’s Employment and boost the economy.
“Our government is fully focused and determined to expand business activity and increase employment generation in Punjab,” CM Maryam said.
Essential Characteristics of the Business Loan Schemes
1. Business Card Scheme
In this scheme, loans for mid-size businesses of a maximum of one million rupees would be given to the borrowers. This initiative aims to develop a meaningful support mechanism for SBs to support their growth in a highly competitive environment.
2. Easy Business Financing Scheme of the Chief Minister
For slightly bigger propositions, loans of up to Rs. 30 million will be provided. They are long-term loans to be repaid within five years, with a grace period of three months after they draw down the first tranche of funds.
SME Startups IT & Business
CM Maryam has instructed the authorities to prepare a working plan to implement such schemes smoothly. Furthermore, she has recommended setting aside unique segments in large cities to accommodate SMEs in the right environment.
Nawaz Sharif IT City IT startups will be considered for loans on preferential terms to encourage innovation. However, measures will be in place regarding usage and accessibility, in particular, the Business Card cannot be used for making payments in areas such as restaurants.
Emphasis on Priority Areas Only
The Chief Minister is also scrutinizing a proposal for offering concessional credit to some select forms of commercial ventures that are important to the economy of Punjab.
To this end, this bold move further demonstrates the government of Punjab is serious about supporting entrepreneurs regardless of the size and type of their business: innovation and sustainable economic growth for Punjab province.
Conclusion
Such interest-free loan facilities are expected to create windows of opportunity for novice and unauthorized businessmen and authorized businesses. With the financial capital and by developing separate regions for distinct business sectors, the Punjab government is building the precondition for a competitive commercial environment.
Please wait for further posts on how these initiatives are changing the economic structure in Punjab!
