December 07, 2006	Thursday	Ziqa'ad 15, 1427

KARACHI, Dec 6: The National Bank of Pakistan has taken up the issue of Utilities Stores Corporation franchise for loan applicants under President’s Rozgar Scheme at the high level of government and has also found a way out to bypass the Corporation by launching the NBP Karobar Transport under which the micro entrepreneur gets grocery items on credit from area businessmen.

Under the original scheme, the loan applicants — educated and unemployed between 18 and 40 years of age – were expected to be given a franchise for utility store business on first-come-first-served basis after sanctioning a 2,500 household settlement. But the Corporation demanded a guarantee of half a million rupees from the loan applicant that literally put a spanner in the Rozgar scheme.

“Anyone with half a million rupees at disposal will not seek Rs200,000 loan on interest that involves documentation and a lot of leg work,’’ remarked a banker. No wonder then not a single case has been sanctioned for NBP Karobar Utility or NBP Karobar Mobile Utility Store.

Senior executives of the NBP are reported to have taken up the issue of half a million rupees guarantee for issuing Utility Store franchise at the level of the President and the Prime Minister.

In the meantime, till a solution is found, the NBP has modified the scheme and launched a Mobile General Store scheme under which the applicant is being given a four-stroke engine gas-driven vehicle and grocery items — branded and non-branded – which are being obtained on consignment basis from area businessmen.

One scheme, involving Rs60,760, has already been approved for which delivery and purchase orders have been issued. Officials claim to have issued 51 purchase orders for Rs2.99 million. These include 44 transport, six PCO-telephone centres and one mobile general store.

The NBP is organising road shows of its products in various cities and towns but has not demonstrated any running business. The Rozgar scheme was part of the 2006-07 federal budget. Its details were announced in September and was formally launched by President Musharraf in October with an announcement of Rs100 billion loan disbursement to 0.4 million unemployed.

The NBP is said to have withdrawn the condition of matriculation and two guarantors to make the scheme hassle-free. Reports suggest that the NBP is considering expanding scope of this scheme and bringing in more trades that would provide opportunities to women also.