October 10, 2006	Tuesday	Ramazan 16, 1427

KARACHI, Oct 9: National Bank of Pakistan has indicated possible changes in the ‘Rozgar Scheme’ by way of expansion and inclusion of new trades and areas and also by way of enhancement to benefit the largest number of “genuine and legitimate” educated unemployed.

Responding to a news report published on the Rozgar Scheme on October 6 issue of Dawn, the NBP management asserted that four weeks time was not sufficient to determine the success or failure of any scheme. “The product is in the test or in a learning phase and will take time to generate pace,” a senior executive of National Bank explained the slow movement in receipt and processing of the loan applications.

The Rozgar scheme was announced in the 2006-07 budget in June and was formally launched on September 6 by President Gen Musharraf who promised to reach 2.5m jobless and educated young men and women with Rs100bn loans in next five years.

Since its launching on September 6, the National Bank reported distribution of more than 292,000 loan application forms in all parts of the country by first week of October of which 231 were received by the bank.

The NBP statement reports approval of 20 cases by October 5 that include 5 in Dera Ismail Khan, 8 in Peshawar, 4 in Gujrat and one each in Jhang, Jehlum and Lahore Central.

The NBP officers were, however, not sure if the successful loan applicants have been given rickshaws, grocery items by the Utility Store or telephone instruments have been installed.

Under the scheme, that offers loan up to Rs200,000, there is no provision for cash but either a CNG driven four stroke Chinese made rickshaw is offered, a franchise of utility store with grocery items are offered or a telephone instrument is installed.

The NBP has set up a comprehensive Complaint Centre at the head office where complaints are received directly by any loan applicant. The complaint is handled by a senior officer in the head office who is in touch with 143 designated NBP branches. “Based on the feedback we receive directly from these call centres, we can make changes in the Rozgar scheme,” a senior executive explained.

As he explained, every bank product takes time to generate pace. He quoted the example of NBP Advance salary scheme under which Rs80bn loans have been given to 1.1m borrowers in last three years. “Only a handful loans were distributed in the initial phase of four months,” he said.

He questioned the assertion that NBP was creating hurdles in the smooth implementation of the scheme. He said that the NBP has hired the services of ICIL for verification of the names addresses and telephones. The ICIL too said that Rozgar scheme was a well structured and planned product for which the NBP was striving to reach the genuine borrower.