Akhuwat Microfinance Initiative in Partnership with Government of Punjab

Punjab Small Industries Corporation (PSIC) has recently launched Micro Finance Self Employment Scheme for unemployed and skilled diploma holders of TEVTA, PVTC, Sanatzar’s of Social Welfare Department and other technical training institutes. The scheme has been initiated with a sum of PKR 1 billion, which is being disbursed an interest free loan, through Akhuwat, a not-for-profit microfinance organization. Akhuwat is fully responsible for loan processing, sanctioning, disbursement and recovery. The average loan size is PKR 50,000, with a repayment period of three years. The scheme is expected to provide access to finance to these technically trained youth to be able to start their own microenterprises. The model also marks an innovative partnership structure between the provincial government and an NGO.