The Chief Minister Punjab, encapsulating his vision to alleviate the poverty in the province decided that Punjab Small Industries Corporation (PSIC) would develop a Micro Finance Self Employment Scheme for unemployed youth of Punjab, targeting especially the skilled Diploma Holders of TEVTA, PVTC, Sanatzar’s of Social Welfare Department or other Technical Training Institutes with an appropriate share of Female Trainees by using the services of Micro Finance Institutions through a transparent procedure.


            M/s Akhuwat has been selected through transparent method as SPO for this scheme. Uptill Now, Government of the Punjab has allocated an amount of Rs. 3000.00 million during 2011-12. 2012-13 & 2013-14 (Rs. 1000.00 for each year) on revolving basis.

            The loan parameters are as under:-


a)           Interest free loan size:  upto PKR 50,000/- only

b)           Repayment period from borrowers: upto 3 years

c)           Mode of repayment of interest free loan: on monthly basis

d)          Interest rate to be charged from borrowers: 0%

e)           Loan application fee: upto PKR 200 to be charged by AKHUWAT

f)            Contributory fund for the payment of loan in case of death of borrower: @ 1% of loan amount and it will be paid by borrower.

g)           Bad debts provision: @ 3% of the total loan portfolio to be picked up by Government of the Punjab.


            M/s Akhuwat has disbursed an amount of Rs. 7.096 Billion to 4,11,000 beneficiaries  including 172000 female loanees by 211 branches throughout Punjab with the recovery rate of 99.85% till August, 2014.

            Monitoring and Third Party Validation of the Scheme is being carried out by Internationally Reputed Chartered Accountant Firm (M/s. Ernst & Young Ford Rhodes Sidat Hyder)

            The following Two committees have also been constituted to monitor the progress of the scheme on monthly and quarterly basis:-


1.     Project Coordination Committee (PCC):


Secretary, IC & ID, Government of the Punjab

Managing Director, PSIC

Additional Secretary (Economic Services), Finance Department, Government of the Punjab

Dr. Muhammad Amjad Saqib, Executive Director, Akhuwat,

Dr. Naved Hamid, Member PSIC Board / Co-opted Member PCC

Dr. Ali Cheema, Member PSIC Board/ Co-opted Member PCC


2.     Implementation and Oversight Committee (I&OC):


Chief Secretary, Punjab                                    

Finance Secretary                                              

Secretary, Industries, Commerce & Investment Department   

Secretary, Excise & Taxation Department