KARACHI: The government has put on hold the Mera Pakistan Mera Ghar (MPMG) and Prime Minister’s Kamyab Jawan Youth Entrepreneurship Schemes (PMKJ-YES), launched by former Prime Minister Imran Khan, and is reviewing the same.

The MPMG low-cost housing scheme has been put on hold for two months while banks were advised by the State Bank of Pakistan (SBP) to stop funding under the schemes. The former government had launched the MPMG scheme to provide low-cost houses for low-income people. The loans were being provided at subsidised rates.

The SBP said the government has decided to review and revise the scheme.

Since the policy interest rate has increased by 13.75 per cent, the low-cost housing scheme looks impossible for the government to continue. The government, under pressure from the IMF, is willing to increase revenue to reduce its fiscal deficit, which is the reason it has decided to withdraw all kinds of subsidies.

“In this regard, it is advised that the government of Pakistan is considering to review or revise features of the subject scheme in light of recent developments in the macroeconomic scenario,” said the SBP. Accordingly, banks, development finance institutions (DFIs) and microfinance banks (MFBs) were advised to put further disbursements under MPMG on hold from July 1 till August 31.

However, in those cases where partial disbursements have already been made till June 30, 2022, banks, DFIs and MFBs may release the remaining disbursements under the MPMG, it added.

Kamyab Jawan on hold

The SBP on Friday said the government has decided to review and revise the Kamyab Jawan scheme and stop funding for 15 days. The scheme was launched to support young Pakistanis and provide them with funds to start businesses.

“It is advised that the government of Pakistan is considering reviewing and revising features of the subject scheme in light of recent developments in the macroeconomic scenario,” said a circular issued by the SBP.

Accordingly, banks participating as executing agencies under PMKJ-YES are advised to put on hold fresh disbursements from July 1, 2022 to July 15, 2022, said the SBP.

Published in Dawn, July 2nd, 2022