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ISLAMABAD: The Prime Minister Youth Loan scheme has allegedly failed to attract widespread response as despite government claims that hundreds of thousands will benefit from it, only 35,959 applications were received of which over 83 percent were rejected.
Documents available with The News reveal that till February 01, 2014 less than 6,000 applications were approved by the bank while others’ applications were either pending or did not match the required criteria.
However, the newly appointed president National Bank held a meeting to urge the regional heads of all the 29 regions and made it clear to ensure the success of this programme.
Federal Minister for Information Pervaiz Rasheed when contacted said for the first time the government had started a positive work for the youths of Pakistan so that instead of seeking jobs, they should become entrepreneurs.
To a query about the expenditures, the federal minister said he did not know exactly about this but if it was true then they are bank’s client and it was responsibility of the bank to bear all the expenses of the applicants.
He said for the first time the bank officials had to do the real task and they had started taking refuge in lame excuses and this was because these poor people had nothing to give them.
He said if something was being done for the betterment of the common man then let it be done. He said the banks never spoke against the acts of giving billions of rupees loan to the bigwigs and then they got it written off.
When contacted, the Spokesman of National Bank Ibne Hassan refused to comment on this issue saying that he was not fully aware of the issue hence could not comment on it.
The source further claimed that the burden of all the expenditures of the balloting ceremony had also been put on bank’s shoulder and the expenditures of transportation and residence of the 5,944 successful candidates would also be paid by the bank.
A well-placed source informed that the government put pressure on the top management of Bank to make this programme successful while the government had passed the entire financial burden on the bank.
The source informed that the government was paying only Rs100 for the scrutiny of the applicants while the total cost for this purpose reached over Rs1,000 that include Rs30 paid to National Database Registration Authority (NADRA).
Similarly, the bank has to pay Rs300 to State Bank of Pakistan (SBP) in terms of Electronic Customer Identity Bureau (ECIB), Rs20 to Data Check private limited for the customer information while the salaries of the staff and other utilities.
More than 400 bank staffers are working on this programme throughout the country while 80 staffers have been deployed in the data centre specially established for Prime Minister’s youth Loan scheme on Tariq Road Karachi.
A top official of the bank on condition of anonymity informed that besides the Prime Minister’s Youth Loan Scheme, the bank was also involved in its own indigenous loaning scheme and the advance salaries loan scheme was the top most and successful scheme. However due to this scheme all other programmes of the bank are being badly affected resulting in falling performance of the bank.
The official informed that just to make this programme successful the bank’s future had been put on stake as the bank was getting only 16 percent markup i.e. 8 percent from the loan seeker and 8 percent from the government. On the other hand, the bank is already getting 19 percent mark up from its all loan schemes including the top most and advance salary programme.
The documents reveal that despite government’s tall claims of focusing the deprived and less developed areas in the programme the figures suggest quite opposite to it.The sources claimed that the lack of interest of the people in this programme was because as per the government claim that the loan would be interest free but the reality was interest had never been withdrawn from this programme.
Programme chief Maryam Nawaz had claimed in an interview with Ansar Abbasi of The News that these loans would be given through the Islamic banking system and thus no interest (or riba) would be involved.
According to the data only 35,959 applications received till February 26 and out of these only 5,944 applications were approved by the bank.
The data further reveals that 842 applications were received from Abbottabad region and only 167 were approved. Similarly, 3,918 applications received from Bahawalpur region and 650 were approved, 4,153 applications were received from Dera Ghazi Khan Region and only 455 were approved, from Dera Ismail Khan only 569 applications were received and only 78 approved.
From Faisalabad Region 1,167 applications were received and only 238 approved, from Federal Capital Islamabad 571 applied for the program and only 135 have been approved. 170 applications received from Gwadar region and only 02 were approved while 116 people applied from Gilgit and no one was approved. From Gujranwala 2,333 applications were received and only 336 were approved, while 1,030 people applied from Gujarat and only 107 were approved. The data further shows that 1,301 people applied and only 105 were approved. From Jhang 2,071 applications were received and 480 were approved while 437 people applied from Jhelum and 90 were approved.
Interestingly from Karachi South Region only 126 applications received and only 12 were approved while from Karachi West 468 people applied and only 34 approved.
It is interesting to note that from Lahore Central only 110 people applied and just 24 were approved. Similarly 1,394 people applied from Lahore East and only 164 were approved. From Larkana Region 704 people applied for this program and 131 were approved.
From Mardan Region 1,343 applications received and only 275 approved. From Mirpur Azad Kashmir only 144 applications received and 23 approved. Similarly 3,961 applications received from Multan Region and 1,261 were approved. From Muzaffarabad Region 375 applications received and only 52 approved. 638 people applied from Peshawar Region and only 145 were approved. From Quetta 756 people applied and only 71 were approved. From Rawalpindi Region 1,345 people applied and only 150 approved. Similarly from Sahiwal 2,071 people applied and 194 approved while 2,486 people applied from Sargodha region and 364 were approved.
From Sialkot Region 900 people have applied and only 142 approved. From Sukkur 460 people applied and applications of just 60 people were approved for this purpose.It is not clear when such a small number of people have applied, why are the banks going to hold balloting shows when all of the approved applicants can get the loan
Over 83 percent applications for youth loans rejected - thenews.com.pk
Documents available with The News reveal that till February 01, 2014 less than 6,000 applications were approved by the bank while others’ applications were either pending or did not match the required criteria.
However, the newly appointed president National Bank held a meeting to urge the regional heads of all the 29 regions and made it clear to ensure the success of this programme.
Federal Minister for Information Pervaiz Rasheed when contacted said for the first time the government had started a positive work for the youths of Pakistan so that instead of seeking jobs, they should become entrepreneurs.
To a query about the expenditures, the federal minister said he did not know exactly about this but if it was true then they are bank’s client and it was responsibility of the bank to bear all the expenses of the applicants.
He said for the first time the bank officials had to do the real task and they had started taking refuge in lame excuses and this was because these poor people had nothing to give them.
He said if something was being done for the betterment of the common man then let it be done. He said the banks never spoke against the acts of giving billions of rupees loan to the bigwigs and then they got it written off.
When contacted, the Spokesman of National Bank Ibne Hassan refused to comment on this issue saying that he was not fully aware of the issue hence could not comment on it.
The source further claimed that the burden of all the expenditures of the balloting ceremony had also been put on bank’s shoulder and the expenditures of transportation and residence of the 5,944 successful candidates would also be paid by the bank.
A well-placed source informed that the government put pressure on the top management of Bank to make this programme successful while the government had passed the entire financial burden on the bank.
The source informed that the government was paying only Rs100 for the scrutiny of the applicants while the total cost for this purpose reached over Rs1,000 that include Rs30 paid to National Database Registration Authority (NADRA).
Similarly, the bank has to pay Rs300 to State Bank of Pakistan (SBP) in terms of Electronic Customer Identity Bureau (ECIB), Rs20 to Data Check private limited for the customer information while the salaries of the staff and other utilities.
More than 400 bank staffers are working on this programme throughout the country while 80 staffers have been deployed in the data centre specially established for Prime Minister’s youth Loan scheme on Tariq Road Karachi.
A top official of the bank on condition of anonymity informed that besides the Prime Minister’s Youth Loan Scheme, the bank was also involved in its own indigenous loaning scheme and the advance salaries loan scheme was the top most and successful scheme. However due to this scheme all other programmes of the bank are being badly affected resulting in falling performance of the bank.
The official informed that just to make this programme successful the bank’s future had been put on stake as the bank was getting only 16 percent markup i.e. 8 percent from the loan seeker and 8 percent from the government. On the other hand, the bank is already getting 19 percent mark up from its all loan schemes including the top most and advance salary programme.
The documents reveal that despite government’s tall claims of focusing the deprived and less developed areas in the programme the figures suggest quite opposite to it.The sources claimed that the lack of interest of the people in this programme was because as per the government claim that the loan would be interest free but the reality was interest had never been withdrawn from this programme.
Programme chief Maryam Nawaz had claimed in an interview with Ansar Abbasi of The News that these loans would be given through the Islamic banking system and thus no interest (or riba) would be involved.
According to the data only 35,959 applications received till February 26 and out of these only 5,944 applications were approved by the bank.
The data further reveals that 842 applications were received from Abbottabad region and only 167 were approved. Similarly, 3,918 applications received from Bahawalpur region and 650 were approved, 4,153 applications were received from Dera Ghazi Khan Region and only 455 were approved, from Dera Ismail Khan only 569 applications were received and only 78 approved.
From Faisalabad Region 1,167 applications were received and only 238 approved, from Federal Capital Islamabad 571 applied for the program and only 135 have been approved. 170 applications received from Gwadar region and only 02 were approved while 116 people applied from Gilgit and no one was approved. From Gujranwala 2,333 applications were received and only 336 were approved, while 1,030 people applied from Gujarat and only 107 were approved. The data further shows that 1,301 people applied and only 105 were approved. From Jhang 2,071 applications were received and 480 were approved while 437 people applied from Jhelum and 90 were approved.
Interestingly from Karachi South Region only 126 applications received and only 12 were approved while from Karachi West 468 people applied and only 34 approved.
It is interesting to note that from Lahore Central only 110 people applied and just 24 were approved. Similarly 1,394 people applied from Lahore East and only 164 were approved. From Larkana Region 704 people applied for this program and 131 were approved.
From Mardan Region 1,343 applications received and only 275 approved. From Mirpur Azad Kashmir only 144 applications received and 23 approved. Similarly 3,961 applications received from Multan Region and 1,261 were approved. From Muzaffarabad Region 375 applications received and only 52 approved. 638 people applied from Peshawar Region and only 145 were approved. From Quetta 756 people applied and only 71 were approved. From Rawalpindi Region 1,345 people applied and only 150 approved. Similarly from Sahiwal 2,071 people applied and 194 approved while 2,486 people applied from Sargodha region and 364 were approved.
From Sialkot Region 900 people have applied and only 142 approved. From Sukkur 460 people applied and applications of just 60 people were approved for this purpose.It is not clear when such a small number of people have applied, why are the banks going to hold balloting shows when all of the approved applicants can get the loan
Over 83 percent applications for youth loans rejected - thenews.com.pk
