Punjab Small Industries Corporation launched a scheme titled “Rural Industrialization Programme” (RIP) approved by the Government in May 1986 with the condition that the entire loan of 220.00 lacs would be made available by the Corporation own resources and the Provincial Government will only pick up interest subsidy through Annual Development Programme (ADP).

Dutch Government with the approval of Pakistan Government to obtained Rs. 15.00 Crore as grant in aid under their financial and technical assistance programme with the conditions that an equal amount would be provided by the Pakistan side for the above schemes.


Due to resource constrained, the Government could not provide the necessary funds, hence they allowed PSIC to retain the advances provided to it as loan for the development of industrial estates in the Province and utilized the same as Punjab Government’s equity towards the Dutch Assistance Programme. However the mark-up on Government interest comes to about 15% p.a and the loan is being disbursed to the prospective entrepreneurs at subsidized mark-up of 7%v per annum, the Provincial Government agreed to provide subsidy of 8% to meet the differential through a scheme titled “Subsidy on Rural Industrialization Programme & Self Employment” which was approved by the Provincial Government in May, 1988.

SME 200

Planning & Development Department allocated an amount of Rs. 1000.000 Million in Development Programme 2008-09 for financing of SMEs  under the Scheme at GS No.2561. In this regard the recommendation of working group constituted by Chief Secretary Punjab for preparation of comprehensive loaning plan by PSIC, other committee and task forces constituted by Chief Minister for this purposes were considered and PSIC proposed a prioritization and utilization plan for  Rs.1000.000 Million. This plan which included the present scheme has been approved by the Chief Minister Punjab through a summary hence the scheme was prepared, which was approved. The administrative approval was issued by the Secretary Industries, Government of the Punjab. 

SME 300

The scheme SME 300 Million was approved in the PDWP meeting held on 19-01-2009 at a total cost of Rs. 300 Million. An amount of Rs. 300 Million was allocated by the Govt. for the sustained development of COTTAGE/MICRO INDUSTRIES/ARTISAN/CRAFTMEN-WOMEN AND HOUSEHOLD INCOME GENERARTING PROJECTS. Based upon allocation of Rs. 300 million PSIC designed a credit scheme for the target group to promote cottage & Micro Industrial Sector.