PESHAWAR: The Khyber Pakhtunkhwa government intends to invest Rs1 billion in the Islamic micro finance banking to provide loans to unemployed youth.

The loans would be provided to skilled male and female youth for purchase of machinery and tools to start their own businesses to earn livelihood in a respectable manner.

The decision was taken at a high level meeting chaired by Senior Finance Minister Sirajul Haq here on Monday, according to a press release.

The meeting was informed that in the first year, machines and tools would be purchased under the Islamic micro finance division for approximately 800,000 unemployed people across the province.

It was decided that the bank giving loans would get a nominal share of the profit while most of the dividends would go to the investor.

Similarly, the minister was informed that 22,000 people could be employed and made self-sufficient in five years under the scheme.

Speaking on the occasion, the senior minister directed the Bank of Khyber to promote Islamic micro finance banking in the province to benefit maximum number of poor people.

The meeting was attended by BoK managing director Imran Samad, Shariah advisor Abdul Samad, additional secretary finance Kamran Khan and other relevant officials.

Published in Dawn, July 8th , 2014