Prosperity plays a vital role in a country’s development. In developing countries, the state provides maximum facilitation to their public to utilize their skill and energy. On the other hand, poverty plays havoc and destroys the core values and fabrics of the existing cultures.
A few decades back, Bangladesh was one of the poorest countries in the region and now it flourishing and emerging as an Asia’s leading country in terms of exports. Reasons were very simple: Bangladesh started utilizing their skilled workers and provided them an interest-free loans, built special industrial zones and provided them technical assistant along with financial. And now Bangladesh exports are touching all-time higher as US$ 42.2 billion worth of goods around the globe in 2018.
In our country, lack of livelihood, unemployment leads the country towards terrorism, unrest, kidnapping, tension, and anxiety. Pakistan has paid heavy price of increasing phenomenon of unemployment though other factors were also involved but the poverty was one of the basic reasons of terrorism in Pakistan.
To reduce the unemployment, promoting skill development and enhancement of small businesses managed by people belongs to underprivileged, the Pakistan Poverty Alleviation Fund (PPAF) is providing betters opportunities of better livelihood for those who unable to generate supportive funds or unable to get soft loans from financial sector.
It was a very pleasant moment that Prime Minister Imran Khan has launched the National Poverty Graduation Initiative (NPGI) under the government’s flagship Poverty Alleviation Programme ‘Ehsaas’. During his address, Prime Minister hoped this this programme will provide relief to the masses through interest-free loans, vocational and skills trainings, and asset transfers.
To address this increasing concern, the Ehsaas is aiming to graduate the poorest households out of poverty to set them on a course of economic and social prosperity. Its components include: i) asset transfers; ii) interest free loans, and; iii) vocational and skills training to make assets productive. Interest-free loans are a major component of the National Poverty Graduation Initiatives (NPGI) which is being executed by the Pakistan Poverty Alleviation Fund (PPAF). PPAF has led such initiatives in the past as well for the economic empowerment of people; however, this time the scale is going to be much bigger.
During his address to Ehsaas launching, Prime Minister Imran Khan said, “Millions of Pakistanis stand to benefit from the interest-free loans, asset transfers, and trainings provided under this programme. Instead of becoming beneficiaries, they will be equipped with strong social mobilization support. The Initiative will support the needs of low-income communities and address one of the biggest factors holding the nation back; poverty.”
Dr Sania Nishtar, Special Assistant to the Prime Minister of Pakistan on Social Protection and Poverty Alleviation and Chairperson BISP also spoke emphasized on reform of institutions as she deemed it necessary for delivery of benefits. “Through Ehsaas we can deliver welfare to the poorest of the poor; but we can’t do that with money alone. Unless institutions have the ability to deliver, the money will go to waste and can be utilized diligently. Therefore, a very important component of this programme centers on governance reform”, she stressed.
Pakistan has paid heavy price of increasing phenomenon of unemployment though other factors were also involved but the poverty was one of the basic reasons of terrorism in Pakistan
As mentioned, Pakistan Poverty Alleviation Fund (PPAF) is the leading implementing agency for NPGI and working hard to eliminate unemployment. Its initiative will reduce the population’s dependence on government-led social safety nets and bring them into the mainstream of economic development and financial inclusion. GoP is actively supporting to provide funds for the initiative and is partnering with the International Fund for Agricultural Development (IFAD) and the Asian Development Bank (ADB). The total projected cost of the initiative is Rs 42.65 billion.
According to details provided by PPAF, during next four years, every month, around 80,000 interest-free loans will be disbursed nationwide. The limit of the interest free loan is up to Rs 75,000. As many as 3.8 million interest-free loans will be sanctioned to 2.28 million households this year. In total, 14.7 million people will benefit from this component. Interest-free loans are accessible through 1100 existing loan centers operated by partnering organizations. Just as example, from a rickshaw driver to a fruit seller to a small farmer, any Pakistani national up to 60 years, possessing a valid CNIC, belonging to the district where the programme is already running and aiming business expansion or planning to set up a new and small business to create an income stream for themselves through these loans is eligible to apply for an Interest-free loan. This is a substantial amount and therefore it won’t be wrong to say that such loans can prove to be life changing for many because it will finally give the poor a chance to pursue their dreams. The facility of interest-free loan can be acquired by an individual up to three times. This shall help them to gain stability along with sustainability.
Under the initiative skills and business development training will also be provided where at least 20,000 youth will be provided special skills to develop innovative businesses. This training will benefit 129,000 people. Training certified by NAVTTC will be taught. Furthermore, 225,000 assets will be provided to the poorest of the poor to start their businesses along with skills training and business planning. The average cost of the asset which will be given as a grant is Rs 50,000. A total of 1.45 million people will benefit from this component.
The initiative will be executed by PPAF, Benazir Income Support Programme (BISP), and forty partnering civil society organisations, including the Rural Support Programs and Akhuwat. It is being rolled out in over 100 districts and will impact a total of 16.28 million people, 50 percent of them being women. The initiative also targets youth, persons with disabilities, transgender, minorities, and marginalized communities in lagging districts. The selection of the beneficiaries is based on the Poverty Score Card maintained as National Socio-Economic Registry by BISP which is used by the government and donors.
Moreover, PPAF has organized over 120,000 community institutions (since 2000) with a focus on the inclusion of women and the poorest. Where participation of women in community organization is around the threshold of 40 percent, Randomized Control Trials on PPAF’s programme has shown positive changes in women’s voting patterns and in the ways that boys view girls and women (The World Bank, Development Economics Research Group, 2014). PPAF has also received the International Fund for Agricultural Development (IFAD) Gender Award in Asia and the Pacific Region for 2014 for addressing gender inequalities, empowering women and providing them visibility. Under an IFAD project, Programme for Increasing Sustainable Microfinance (PRISM), the share of women borrowers increased to 73 percent, way over the set target of 50 percent.
Now under ‘Ehsaas’ initiative, distribution of 80,000 interest free loans every month signifies that lives of 80,000 households can be transformed. This means millions are moving out of the circle of poverty and entering the circle of prosperity. For Pakistan this could be a huge game-changer and probably a right step towards a Naya Pakistan!
The writer is a freelance columnist