September 10, 2006	Sunday	Sha'aban 16, 1427

KARACHI, Sept 9: The government wants to reach about 400,000 borrowers with about Rs20 billion by the end of June next year through the National Bank of Pakistan branch network under the “Rozgar Scheme” being implemented to create a support base for the coming general elections.

National Bank is also working out an arrangement for the distribution of Rs100 million in each of 106 districts for the implementation of the “Khushhal Pakistan Programme”. It is aimed at developing infrastructure facilities to facilitate the beneficiaries of the Rozgar Scheme to do their business more efficiently.

NBP will be a mere distributor of Rs10 billion under this programme and will be actively involved in disbursement of Rs10 to Rs20 billion under the Rozgar Scheme.

“The combine impact of the two schemes will change altogether the existing dismal environment of the country to give a new hope of prosperity to the young people,” a banker having an academic interest in politics said. He pointed out: “Imagine even half of these targeted borrowers are reached with Rs10 billion in the next nine months to operate and run public transport, public telephone and grocery business in all parts of the country under the Rozgar Scheme, as many as 100,000 beneficiaries will be active and vocal supporters of the government who will live and move in low income group localities.”

“Add to this number of Rozgar Scheme beneficiaries an equal number of those who will benefit under the Khushhal Pakistan and you imagine yourself the tremendous impact on public opinion,” he said.

Under the scheme, NBP is offering a maximum loan amount of Rs200,000 to educated unemployed youths for five categories of business -- Karobar utility, Karobar mobile general store, Karobar transport, Karobar PCO and Karobar tele-centre. Loans are being offered on Kibor plus two per cent to the borrowers. The government will subsidise 50 per cent of the interest from its budget. Launched formally on Tuesday by President Pervez Musharraf, the NBP branches reported on Saturday distribution of about 40,000 loan application forms from its countrywide network.

“Every single form will be processed in 10 days and the borrower will get a firm answer by then,” a senior executive of NBP informed Dawn. He disclosed that a private Pakistani credit rating company that operates in collaboration with an internationally reputed company had been given the task to evaluate the application form and find out credentials of the borrower. The company has online arrangement through a network in all parts of the country.

While the application forms for loans will be distributed and received by all the branches of NBP, there are 146 designated branches in all parts of the country where in each of these branches a three-member special cell has been set up for scrutiny and processing of the forms.

“Not a single paisa will be given in cash,” the officer made it clear. Those who want to set up grocery business will be asked to collect their items from the nearest Utility Store. Those who want to run transport will be given four-stroke CNG-run rickshaw and telephone system will be installed for those who are interested in setting up public call offices.

Officials at NBP said they were aware of the hostility of existing public transporters in Karachi towards the transport scheme under which an owner-driver would operate his business on a payment of Rs500 to Rs1,000 per month.

The NBP officials are aware that all schemes of operating an efficient and comfortable public transport have been rendered inoperative by the traditional public transporters. They hoped that the administration would take adequate measures to protect the NBP loanees.