KARACHI – Prime Minister Youth Business Loan (PMYBL) scheme is becoming exceedingly popular among the masses and multiple sectors as different commercial banks are now flexing their muscles to introduce it in near future, Syed Ahmed Iqbal Ashraf.
This was revealed by Syed Ahmed Iqbal Ashraf, President National Bank of Pakistan (SBP) while addressing a signing ceremony of Memorandum of Understanding (MoU) with Master Motor Corporation here on Monday.
The government has allocated Rs 20 billion for the first year which could not be met by NBP solely though the contribution of commercial banks is indispensible to promote the scheme in the country at faster pace.
The scheme is commercially viable though it is the initiative of the government but NBP is carrying out loan scheme transparently and systematically on merit basis keeping in mind the role of bank in generating economic activities, creating employments and contributing towards financial inclusion of the system.
He mentioned that different banks’ representatives have visited NBP to examine its execution process to replicate the scheme through their outlets, and we want different banks to participate in the scheme in true letter and spirit in which NBP has been involved to serve the national cause.
He added that interest earning of the bank is not as bad receiving 8 percent from the beneficiaries and 7 percent from the government but the objective of the scheme is far greater of the commercial interest of the bank, which is paramount for NBP.
“I think the interest earning is profitable, he said while responding to a question. The bank processed all applications because the loan money is of depositors and could not be given to those don’t meet the criteria, Iqbal added.
NBP has made significant progress in successfully implementing this scheme. Until now, it received 59,162 applications and approved loans for 4,912 applicants amounting to over Rs 2.885 billion. The loan amount will be increased to Rs 5.9 billion in the second tranche.
Majority of the applicants constitutes 76 percent belong to Punjab, 9.14 percent from KPK and 8.17 percent from Sindh and the rest from different parts, NBP president added. He said the balloting of the application is done to maintain the distribution of the regions and genders on equality.
On the occasion, S H Irtazi Kazmi NBP EVP and Coordinator PMYBL said the bank is witnessing exceedingly increasing interest of entrepreneurs and corporation in this scheme which is evident the overwhelming number of applications submission and proposal of various companies to do business with NBP.
He added that over 100 business models have been designed along with various corporations in order to provide loans to the applicants along with business opportunities hence they could establish themselves at the earliest to perform their role in the economy.
Kazmi added that NBP has chalked out an aggressive marketing strategy for the scheme through media and seminars among the young entrepreneurs to involve maximum number of youngsters in the scheme.
The role of the scheme is to promote small and medium business in such a way that it will grow as larger companies and generate jobs for the unemployed youth.
In this regard, NBP reached yet another milestone by signing of a Memorandum of Understanding (MoU)with Master Motor Corporation (Pvt.) Ltd. (MMC) in a graceful ceremony held at NBP’s Head Office in Karachi today.
This ceremony was attended by Syed Ahmed Iqbal Ashraf – President & CEO of National Bank of Pakistan, Mr. Mudassir H. Khan – SEVP & Group Chief, Commercial & Retail Banking Group, and Mr. S. H. Irtiza Kazmi – EVP & Coordinator – PMYBL, Commercial & Retail Banking Group. While Master Motor Corporation (Pvt.) Ltd. was represented by Mr. Nadeem Malik – Managing Director, Master Motor Corporation (Pvt.) Ltd., Mr. Muhammad Nadeem – General Manager Finance, and Mr. Muhammad Suleman – Senior General Manager Marketing and Sales at Master Motors Corporation (Pvt) Ltd.
The salient features of the MoU include broader understanding between the parties that MMC will play an active role in promoting PMYBL program by offering its products/services to the prospective customers as an option, exclusively through NBP. NBP is encouraged by the inclusion of MMC as alliance partner into this program. Both institutions are confident that this alliance will go a long way in enhancing the mutual objectives under this MoU and will provide further opportunities to the prospective customers.