Karachi: The National Bank of Pakistan management categorically rejects the incorrect impression created in a section of the press that applicants from a particular province are being favoured in the Prime Minister Youth Business Loan (PMYBL) portfolio distribution. The PMYBL programme is being run independently and transparently by the NBP. There is no political influence whatsoever. In support of its claim, the reporter has said that 75% of all loans disbursed are from one province but this is only half-truth. The other half conveniently overlooked in the report is that nearly 75% of all applications received and more than 75% of all applications declined and rejected are also from the same province. NBP has 1,500 branches in Pakistan. Nearly 60% of these branches are in Punjab. There are 400 branches of NBP designated for PMYBL. The criteria for selection of branches for the loan disbursement scheme were related to HR and infrastructure capacity. Of the 400 designated branches, 178 are in the Punjab (44%); 132 in Sindh (32.3%); 38 in Khyber-Pukhtunkhwa (9.5%); and 32 in Balochistan (8%). There are 16 designated branches in Azad Jammu and Kashmir, four in Gilgit Baltistan and three in Federally-Administered Tribal Areas (FATA). The designation of branches was undertaken on directives from the NBP management alone. The scheme was announced and advertised on national media and applications were invited from all eligible citizens of the country. NBP could not in any way restrict submission of applications from any province. NBP has, to date, received 79,127 applications. Of these, 77.23% were received from Punjab., 8.4% from Sindh, 7.97% from KP, 2.27% from Balochistan. Of the 17,323 applications approved in Punjab, 9,528 applications (55%) were from South Punjab. The districts featuring in these applications were Rahim Yar Khan, Dera Ghazi Khan, Layyah, Rajanpur, Bahawalpur, Bahawalnagar, Sadiqabad, Muzaffargarh, and Multan. The processing of applications was based on approved business rules and was carried out in a transparent manner free from any political influence, personal discretion and bias. No single person can influence the fate of any particular application and all decisions are based strictly on merit. SME lending has been a challenging area for bankers and it is for this reason that SME financing as a percentage of GDP is below 1% and industry NPL ratio in SME loans is 27%, according to the State Bank of Pakistan Quarterly SME Review – June 2016). Unsecured component in total SME lending is merely 5%, whereas in PMYBL, approximately 90% of all loans are unsecured and backed only by personal guarantees. In this backdrop, schemes like PMYBL should be encouraged and supported. NBP has always been keen on supporting small entrepreneurs and this is evident in its staggering 23% market share in SME lending – in a market comprising around 165,000 SME borrowers. In addition, NBP hosts approximately 38,000 small business (SE) loans. NBP would like to reiterate its resolve to continue supporting this programme and playing its role in building a strong entrepreneurial culture in Pakistan for eradicating unemployment and expanding and strengthening country’s SME sector. NBP has always been at the forefront in the implementation of schemes of national importance and would like to reassure the nation that all its branches are open and ready for accepting applications in PMYBL programme. Published in Daily Times, August 9th 2017.