musharraf launches rozgar scehme to fight unemployment
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Musharraf launches Rozgar scehme to fight unemployment
* NBP to give loans to 2.5 million people* Rs 20 billion project to be completed in 3 to 5 years
Staff Report
ISLAMABAD: President General Pervez Musharraf launched theRozgar Pakistan scheme on Tuesday, and said it would helpunemployed youth and women in underdeveloped areas.
Prime Minister Shaukat Aziz also attended the launch of the scheme,which, according to Musharraf, would help poor people earn asustainable income in the society. “This is a very good and practicalscheme and it will immensely benefit the lower strata of oursociety,” APP quoted the president as saying. The president toldreporters that under the scheme, the National Bank of Pakistanwould provide loans on easy installments to around 2.5 million unemployed people.
The project would provide employment opportunities to young people, he said, adding that the Rs 20 billionscheme, to be completed in three to five years, would focus on underdeveloped areas and benefit millions of people.
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“Such schemes have more application and significance in Balochistan where educated youth must get jobopportunities to contribute to the socio-economic uplift of the province,” he added. Musharraf said he had askedAziz to introduce an internship scheme for graduates in Balochistan.
APP adds: The president underlined the importance of effective and efficient implementation of the scheme to ridthe society of unemployment.
National Bank of Pakistan President Ali Raza, who attended the launch as well, said, “The bank will give amaximum loan of Rs 200,000 to an individual, and it will have to be repaid in five years.” He said that the schemecovered utility stores, transport, public call offices (PCO) and tele-centres.
Raza said that forms for loans would be available at 1,200 branches of the bank all over the country fromWednesday. Raza said the scheme contained elements of similar schemes that had been successful in Bangladesh,Indonesia and Vietnam. The National Bank of Pakistan president said it was President Musharraf’s vision to reduceunemployment. He said that qualified matriculates between the age of 18 and 40 were eligible to get loans fromthe National Bank of Pakistan . The government would share the interest on these loans and customers would haveto pay only a six per cent mark-up,he added.
The president and prime minister went around stalls of an exhibition organised in connection with the launch of thescheme
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1,100 offered loans under Rozgar scheme Share
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Published 2007-02-24 00:00:00
KARACHI, Feb 23: President of National Bank of Pakistan Ali Reza said on Friday that
1,100 unemployed persons had been offered assistance under the NBP Karobar
scheme so far since its launch in October 2006. The bank has plans to expand this
number to 1.8 million jobless people in next five years with a total loan amount of
Rs105 billion.
The NBP president announced an extensive launching of the scheme from March 31
onwards through 1,000 branch network in the country. In his first presentation to the media
on Friday at the NBP conference room, Mr Ali Reza elaborated on various aspects of the
NBP Karobar that was launched as Rozgar scheme by the government.
Under NBP Karobar, five different financial packages are being offered to the unemployedpersons between 18 and 45 years of age. These are: (1) Utility Store under a franchise, (2) a
mobile general store, (3) transport, (4) PCO and (5) a tele-centre
“This is not a political gimmick,” the NBP president took pains to dispel this impression and
stressed that the NBP Karobar is a unique product that has been launched as a viable public
private partnership commercial proposition after tremendous research and study of similar
schemes in India, Indonesia, Bangladesh and Thailand.
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He made it clear that the NBP Karobar was not a consumer financing product. The consumer
financing does not generate income or economic benefits to the beneficiary of the loan but it
creates some comfort.
But the NBP Karobar in its present five categories will generate income and economic benefit
and after the full loan is paid in two to five years, the beneficiary of the loan will become
owner of the asset, he added.
His assessment was that the beneficiary of this loan will be able to earn income between
Rs10,000 to Rs18,000 a month after he has paid all instalments and becomes owner of the
facility.
Mr. Reza spoke at length to point out that the government‟s Rozgar scheme announced by
the minister of state for finance in his budget speech in June and later launched by the NBP
as Karobar scheme has nothing to do with the employment schemes like yellow cab or
similar other projects.
“The applicant will contribute about 30 to 40 per cent of the cost of product to be offered tohim under the scheme while the NBP will offer 60 per cent,” he said adding that the
government‟s contribution in the scheme is six per cent interest subsidy, loss sharing, free life
and disability insurance and registration for the recovery of assets of NBP throughout
Pakistan.
Mr Reza did concede that the progress on Karobar scheme was slow because like all retail
products, “we are passing through a learning phase and trying to understand problems.” His
other explanation for slow progress was that it was launched in October when it was
Ramazan. The progress remained slow in November and December but picked up tempo in
January and reports suggest further improvement in February.
He justified association of two companies with the scheme for offering the product because
he said the idea was to ensure availability of products, uninterrupted supply of spare parts
and after-sales-service. But with the course of time he said more products will be offered in
the scheme and its scope will be enlarged.
“This scheme is not structured exclusively for the NBP, he declared adding that it was open
for all the banks to participate.
Earlier Mr Aamir Siddiqui of the bank announced relaxation of certain requirements, which
include age, driving licence, education, character certificate, guarantor and reduction in down
payment to 10 per cent from 15 per cent.
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NBP okays two new schemes for jobless
By Sabihuddin Ghausi
KARACHI, Dec 27: Despite numerous hurdles in its way in all four provinces,
officials of the National Bank of Pakistan (NBP) say that they have delivered „green
rickshaws and some other equipment worth more than Rs2 billion to 20,309
unemployed people in the last ten months‟ under the most expensive and glamorous
employment generation scheme of the country.
Formally called the President‟s Rozgar Scheme, the NBP proposed that it would
disburse about Rs85 billion in the next five years to some half a million unemployed
persons.
The bank has now finalised two new products for inclusion from early 2008 in the
scheme. Besides loans for transport, the NBP is now preparing to help uneducated
medical graduates by offering primary health care kits and four wheelers to be used as
taxis and good carriers.
“Out of more than 20,000 accounts of the unemployed in the last ten months, only 203
accounts involving Rs18.28 million have been found to be irregular,” confided a
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senior official.
Of these irregular accounts, 107 are in Sialkot with a stake of Rs7.81 million and 83 in
Central Lahore with Rs8.97 million.
Five products of the scheme were announced in 2006: the NBP Karobar Utility Storeunder franchise with the Utility Stores Corporation (USC), NBP Karobar Mobile
General Store without franchise, NBP Karobar Transport, NBP Karobar Public Call
Office (PCO) and NBP Karobar Tele-Centre.
The NBP is now enlarging its scheme by launching new products.
After a soft launch in October 2006 and full launch on March 31, 2007 through 1,000
designated branches of the bank, the transport scheme was most popular with the
people and an overwhelming majority of the 20,309 unemployed applicants had
utilised the gas-run green rickshaws in the last ten months.
The NBP officials claimed that there was no chance of any political intervention in the
scheme since the entire process had been computerised. “The computer does not
recognise anyone from political affiliation,” the official said.
“The USC is demanding a financial guarantee of Rs200,000-Rs300,000 for giving a
franchise to an unemployed who is himself seeking a loan and, therefore, the scheme
cannot move ahead‟‟ an official said, adding that effor ts were under way to find a
solution.
But the real challenge was coming from the bureaucracy at all levels in the four
provinces which was thwarting the transport scheme. The governments of Punjab and
NWFP were not giving a formal policy approval for the registration of rickshaws
delivered under the scheme in their main cities. The registration of vehicles was being
made on intervention of the government at high levels or from influential persons.
Approvals were being sought for the transport scheme in Lahore, Faisalabad,
Rawalpindi, Gujranwala, Multan, Peshawar, Mardan, Mingora, Abbotabad, Kohat,
Bannu and Dera Ismail Khan.
The Sindh government had issued a notification regarding the NBP schemes only after
the prime minister himself intervened last April. The Quetta nazim had reportedly
stopped registration of rickshaws given under the scheme since Nov 7.
Earlier at the time of the scheme‟s launch, the District Regional Transport Authority
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of Quetta used to demand Rs15,000 as registration fee for rickshaws obtained through
the bank.
“Had the schemes been allowed to operate smoothly and unobstructed the NBP might
have delivered machines and equipment worth more than Rs10 billion to a quarter
million of unemployed people in the country‟‟ a senior official claimed.
In the face of all such hurdles, the NBP received loan applications from 65,259
unemployed persons seeking assistance worth Rs5.78 billion. After an electronic
scrutiny, 49,951 applications were found in order and assistance worth Rs4.80 billion
was sanctioned. Of this, 20,309 persons were delivered rickshaws and other goods
worth Rs2 billion by Dec 15.
“On average we are delivering rickshaws and equipment worth Rs300 million
everyday to loan applicants,” the official said.
Under the proposed new products for unemployed medical graduates, students with
graduate degrees recognised by the Higher Education Commission will be given ECG
machines, urine analyser, pulse oximeter, glucose and cholesterol tester, computer and
printer, ultrasound machine and some other equipment.
The NBP is in negotiations with automobile companies for delivering four wheelers to
the unemployed to be used as taxis and good carriers.
“We may also offer imported vehicles,” the official hinted and pointed out that atracking device would be installed to ensure that the vehicles given under the scheme
operated within jurisdiction.
The NBP officials maintained that the scheme had a positive impact in terms of direct
employment and expansion of the vendor industry.
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NBP to launch two more ‘Karobar’ loan
schemes
By: AAJ News Archive, Uploaded: 7th June 2008
The National Bank of Pakistan (NBP) is planning to launch two new subsidised loan schemes worth Rs 40 billion for establishment of
small and medium businesses and personal transport, providing new business opportunities to jobless people.
Sources said that NBP has decided to introduce some new products under „NPB Karobar‟ (business) for providi ng opportunity of
acquiring soft loans to more people. The NBP management has already made necessary arrangements for launching the new products,
and it has also got the go-ahead instructions from Finance Ministry.
Under the new products, NBP will offer loans up to Rs 0.6 million for setting up shops, boutique general stores, gift shops and other
retail stores. In the first phase, loans will be given in well established or government housing schemes like cantonment boards.
This scheme will be carried out as a pilot project for first six months and in the next phase loans will be offered for small businesses for
other parts of the country. The bank is making efforts to ensure that the bank‟s principal amount should be safe in case of d efault.
Therefore, in the first phase, the scheme will be launched in cantonment board and defence housing schemes.
In the transport scheme, NBP will grant loans up to Rs 0.7 million for purchase of commercial vehicles, including locally made taxies,
light trucks, etc, to give new opportunities to the jobless, besides promoting local automotive industry.To protect vehicles from theft, trackers would be installed on all vehicles financed under this scheme. Loans under new scheme will be
granted at a minimum mark-up rate, of which 50 percent will be paid by the government. “Mark -up of loans under these schemes will
depend on Kibor, and the government will pay 6 percent mark-up on behalf of the customer, while borrowers will have to pay the
remaining mark-up”, sources said.
Down payment for these schemes would be 10 percent, and the bank has plans to provide Rs 40 billion loans under these two schemes.
These schemes will be launched soon through NBP‟s over 1,000 branches across the country. It is already offering products und er NBP
Karobar Scheme including NBP Karobar Utility Store, Mobile Utility Store, Mobile General Store, NBP Karobar PCO and NBP Karobar
Tele-centre.
The „NBP Karobar‟ is the first public-private partnership scheme in Pakistan and, under this over 75,000 people have so far got
themselves registered for obtaining loans. Of them, around 28,000 have been provided loans amounting to Rs 8 billion.
NBP Karobar is a part of President of Pakistan Rozgar, which was announced in September 2006 and was test-launched in October 2006
from 125 NBP online branches throughout Pakistan and later fully launched in April 2007 through approximately 1,000 NBP branches.
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Here is the Yellow Cab Scheme, again!
By Mian Muhammad Nadeem
July 29, 2011
Our governments always initiated schemes for alleviation of poverty and unemployment. These included provision of tractors, ching
chee rickshaws and taxicabs. PML-N chief Mian Nawaz Sharif started the Yellow Cab Scheme during his tenure in 1992 for which
HBL, UBL and NBL were tasked with provision of interest-based loans for the scheme. Carmakers Hyundai and Daewoo were
selected for provision of vehicles against 10% down payment of the total cost. This attracted the attention of masses and long lines
were witnessed outside banks to collect forms. But despite much ado these Hyundai and Daewoo cars are being used for personaluse.
Sartaj Aziz, the then finance minister, still defends the scheme as a conducive, self-employment scheme as one possessed a grand
taxicab after paying an equivalent of three-year salary. However, this statement stands out to be quite inaccurate, as this scheme
catered mostly to the youth associated with the PML-N, while some sources even claim that the scheme was manipulated by a
Punjab Assembly MPA, who is deft at changing floors at opportune moments. This person has also been involved in the scandal o f
re-conditioned cars. The Yellow Cab Scheme witnessed an influx of cabs only in major cities of Lahore, Karachi, and Islamabad,
while smaller cities required a flux of wagons and buses, which were but few in the scheme due to heavy costs they incurred.
Economists had termed the scheme quite inadequate and inappropriate for alleviation of unemployment, as only a few city youth
were able to avail themselves of this opportunity, while the bulk of rural youth remained deprived. More than 1.1 million applied for
these taxicabs, while Sartaj Aziz claims that 500,000 were provided. So where did the remaining half million disappear could be
anybody‟s guess. Punjab University professor Dr Qaes Aslam claims that this scheme mainly benefitted the rich and bureaucrats, as
they got these cabs repainted for personal use when the scheme ended. Many clients failed to repay the banks. According to Dr
Qais while the scheme cost tremendously, its benefits stood at the lowest. Hence despite the fact that transport is at the lowest
these days, schemes like these basically initiated for the needy often end up in the hands of the rich.
The Nawaz Sharif government is understood to have cost various banks approximately Rs14 billion for a period of 14 continuous
months after which the government was terminated. This scheme also listed the charge sheet read out by the then President
Ghulam Ishaq Khan on the state TV. Though Sartaj Aziz admitted „some mistakes‟, he passed the major buck on to the banking
unions who disbursed loans among some undeserving elements. Obviously, banks lost heavily here, but overall the default was
definitely not above the current rate.
Unemployment and poverty are/could be well alleviated by setting up industrial units. Expressing their reservations about the
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scheme, economists have recommended a strong transparency in the scheme, lest it brings equally strong blows to the already
fragile economy of the country. The Punjab government has recently announced resumption of Yellow Cab Scheme. Former finance
minister Shaukat Tareen has also lauded the basics of the scheme but stressed a careful evaluation of the exact amount of taxicabs
required for each city. He also emphasized transparency in the allocation of vehicles.
He warned that if these vehicles were given on political grounds like in the past, then the entire policy would backfire. He
recommended that banks should fund the scheme on merit, while loan disbursement should not be left entirely on the Punjab Bank.
He wants the Punjab government to provide a temporary guarantee for the scheme, as any fully committed guarantee could createfinancial problems for the province. During the past politically-oriented endeavors, the banks had absolutely no experience of
handling loans, while those who borrowed also refrained from any repayments. According to a careful estimate more than 40% of
investment was lost. He also said that the current scheme of providing small size Suzuki taxicabs for 20,000 educated and
unemployed youth should better be transparent.
Meanwhile, PML-N Senator Pervez Rashid has strongly defended the scheme, saying that banks never went bankrupt due the
scheme, nor such threats existed currently. Economic analysts Shahid-ur-Rehman has strong apprehension that these taxicabs
might be distributed on political grounds.
Meanwhile, the position of PML-N in the Punjab Assembly has weakened considerably, with Chief Minister Mian Shahbaz Sharif
working under a minority-oriented depression. The opposition is crying hoarse over lack of good governance, citing such anomalies
as strikes by almost all segments of society against high incidence of unemployment and lack of residential schemes for the poor.
According to the opposition, the Punjab government owed Rs485 billion to the banks and almost every department had gone
bankrupt, bringing no salaries to the employees. It also accused the chief minister‟s secretary Dr Tauqeer of holding the ent ire
province hostage.