Punjab Chief Minister Maryam Nawaz Sharif has approved the groundbreaking CM Punjab Assan Karobar Finance scheme. This initiative aims to boost economic growth and empower small and medium-sized entrepreneurs (SMEs) across Punjab.
Objectives of the Scheme
The Assan Karobar Finance scheme is designed to:
- Stimulate job creation.
- Enhance exports.
- Drive economic development through interest-free loans and comprehensive support.
Key Features
Funding Support
The scheme offers funding to help entrepreneurs:
- Start new businesses.
- Expand existing operations.
- Modernize and upgrade their setups.
- Finance working capital, modernization, machinery replacement, and logistics.
Inclusive Sectors
This program is available to all business sectors, including agricultural SMEs, and complies with State Bank of Pakistan (SBP) regulations.
Loan Structure
The scheme is divided into two tiers:
- Tier-1: Unsecured loans up to Rs5 million.
- Tier-2: Secured loans ranging from Rs5 million to Rs30 million.
Eligibility Criteria
To qualify, applicants must:
- Be between 25 and 55 years old.
- Have a good credit history.
- Be business owners or tenants of the business premises.
Repayment Terms
- Loans have a repayment period of up to five years.
- New businesses get a six-month grace period, while existing businesses receive a three-month grace period.
Digital Support: Assan Karobar Card
The Punjab CM Assan Karobar Card simplifies the process for small businesses by offering:
- Interest-free loans up to Rs1 million.
- A three-year loan term with a three-month grace period.
This digital platform ensures the funds are used appropriately, benefiting over 100,000 small businesses.
Additional Incentives
The scheme also includes:
- A capital subsidy of up to Rs5 million for solar equipment and cleaner production technologies.
- Non-financial advisory services.
- Development of new small industrial estates in areas like Sialkot, Gujrat, and Quaidabad.
Special Focus on the Tannery Sector
Efforts are underway to improve the tannery sector in Sialkot by relocating a shoe tannery to a designated Tannery Zone, aiming to reduce water pollution and enhance leather export quality.
Future Plans: Phase-II
The government is planning Phase-II of the Assan Karobar Finance scheme, which will:
- Have a broader scope with a budget of Rs100 billion.
- Support around 24,000 SMEs with loans totaling Rs379 billion.
- Launch in the next fiscal year to promote overall provincial growth and development.
Conclusion
The CM Punjab Assan Karobar Finance scheme is a transformative initiative that will empower small entrepreneurs, drive economic growth, and enhance the business ecosystem in Punjab. With comprehensive support and strategic planning, this program aims to create a thriving entrepreneurial environment in the province.
