KARACHI, Sept 18: The demand for `speed money’ by the local traffic police and elected councilors for issuing driving licence and area residential certificate from the applicants who are seeking loans from National Bank of Pakistan for rickshaws and grocery items from utility stores has put a brake in the implementation of the “Rozgar Scheme” formally launched on September 6.

“Not a single loan has been approved in the last 12 days,” a well-placed source at NBP disclosed on Monday, who claimed that as many as 100,000 forms had been distributed by NBP branches in all parts of the country, including Balochistan. “Hardly 100 forms have been received so far, but it is doubtful if all these applications are in order and comply with the conditions of NBP’s Karobar scheme,” the source said. NBP is implementing the government-sponsored Rozgar Scheme in the name of Karobar scheme.

The four-stroke rickshaws driven by CNG have apparently caught fancy of the rural and urban youth for which there is a demand. But the local traffic police are acting as a `villain’ and demand money from those who are unemployed and penniless and seek rickshaw against bank loan.

There are many complaints against the local Union Council members who too want their share in the expected loan of the bank without realising that under the Karobar scheme, NBP will only give rickshaws and grocery items and help in setting up a public call office. “Not a single paisa will be given in cash,” the source asserted.

Besides these issues and complaints, NBP officials expect some backlash from the “transport mafia” in Karachi and other cities. The transport mafia is not happy with plying of new rickshaws being given to educated young and unemployed people on loan to be serviced in easy installments. NBP has lined up 2,000 rickshaws for distribution under the loan scheme.

While there is a condition of minimum qualification of matriculate for the men who seek loans under the Rozgar Scheme, the women have given an exemption only for setting up public telephone cal offices. Bankers report that names of wives, sisters and even mothers are being used to get a loan for this purpose.

Under the arrangements worked out for approval of loans, a cell of three officers has been formed in each of 146 designated branches. This cell will check the credentials of applicants and their guarantors and pass on the application form to a private consultant company engaged for this purpose.

But unlike Nawaz Sharif’s transport employment scheme or Benazir’s self-employment scheme, the power to approve the loan is not with the branch manager. The loan will be approved by the bank only after the private company engaged for this purpose has carried out a physical verification of the details given by the applicant about himself and his education and property and also about the credentials of the guarantors.

Bankers reveal that the company will be paid Rs500 for processing every loan application form. The three bankers’ team in each of 146 designated branches will prefer to reject loan applications at their levels and pass on the forms to the company after satisfying themselves completely.

Under the scheme, the government wants to reach 400,000 borrowers, with Rs20 billion loans in kind to help them establish their transport, grocery business and set up a small public call office. Bankers do not rule out expansion in trades under the scheme and its successful operation could tempt other banks to join in at a later stage. Under the scheme, the loan carries a 12 per cent interest of which six per cent will be given by the federal government.The bankers are confident of success of the scheme because according to them enough safeguards have been taken to ensure that these are not abused by the politicians and businessmen. According to the bankers, the politicians abused Nawaz Sharif’s yellow cab scheme and Benazir Bhutto’s self-employment scheme because as they contend the banks were under government control and there was a Pakistan Banking Council to deliver goods. National Bank is a government bank but is now under close watch of 80 per cent banking sector under the private control.

Government’s stakes in the Rozgar Scheme are very high because it depends on the creation of a strong supporting base in low income group people that will allay the impression of the present government that it is “pro-rich and anti-poor” in the next elections.