MUZAFFARABAD: The Bank of Azad Jammu and Kashmir (AJK) and the Small Industries Corporation on Thursday signed a memorandum of understanding (MoU) to launch a Rs1 billion interest-free loan scheme aimed at supporting youth entrepreneurship in the region.

Under the initiative, loans ranging between Rs500,000 and Rs2 million will be provided for new and start-up businesses. Officials said 48 per cent of the quota had been reserved for women while, for the first time, transgender persons would also be eligible.

Loans of up to Rs500,000 would be available against five guarantors. The signing ceremony was attended by Minister for Small Industries Taqdees Gilani, Finance Minister and BAJK Chairman Abdul Majid Khan, Finance Secretary Islam Zeb, Industries Secretary Chaudhry Abdul Rehman, BAJK President/CEO Shahid Shehzad Mir, and senior officials of both institutions.

Officials maintained that the scheme would help youth establish small businesses across all 10 districts of AJK, create employment opportunities, and reduce poverty.

Published in Dawn, August 29th, 2025