Friday, April 19, 2024

ECC authorises Kamyab Pakistan Program, 40% IPP payment

The Economic Coordination Committee (ECC) of the Council of Ministers formally authorized the Kamyab Pakistan Program (KPP), which has five components to develop the low-income and unemployed segments of society.

Shaukat Tarin, Minister of Finance and Revenue of the Federal Government, presided over the meeting on Thursday.

Before the committee, the Finance Division provided an updated description of the Kamyab Pakistan Program (KPP) that had been developed.

During consultations with stakeholders, the program’s structure has been refined to disburse microcredit for the purpose of uplifting marginalized elements of the society. Currently, there are five components of the KPP: Kamyab Kissan, Kamyab Karobar, Kamyab Hunarmand, Naya Pakistan Low-Cost Housing, and Sehatmand Pakistan.

As part of the first three components, micro-loans would be provided to qualified individuals who have registered with the Ehsaas data through the National Socioeconomic Registry (NSER) and have a monthly family income of up to Rs50,000 would be disbursed.

The latter two components of the KPP will be integrated into the existing programs and initiatives. The KPP is intended to be integrated with the government’s continuing skill development program with the purpose of providing educational and vocational training to the general public.

KPP’s updated framework for selecting wholesale lenders (banks) will employ competitive bidding in accordance with the PPRA’s rules for the selection of wholesale lenders.

The microfinance providers (MFPs) will be chosen by the large financial institutions (FIs). There will be two guarantees provided by the government: a 10% first loss guarantee for mortgage finance companies (MFPs) and a 50% first loss guarantee for wholesale lenders (banks) on a pari passu/risk-sharing basis.

Balochistan, Khyber Pakhtunkhwa, Gilgit-Baltistan, Azad Jammu, and Kashmir, as well as some of the poorest districts of Sindh and Punjab, will be the first provinces to benefit from KPP in the first phase.

Eventually, the KPP will be expanded to cover the entire country of Pakistan. For implementation, the Kamyab Pakistan Information System (KPIS), a digital portal, is being developed. It will be fully integrated with the telecommunication companies, including the National Telecommunications Company (NTC), Ehsaas/NSER, and Nadra, and will allow for the verification of beneficiary eligibility.

Having deliberated over a long period of time, the ECC approved the Kamyab Pakistan Programme for submission to the Cabinet.

The key elements of the Kamyab Pakistan Programme were praised by the committee’s members, who considered it to be a hallmark project of the current government to empower the underprivileged population with minimal resources.

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