By Sajid Irfan

ISLAMABAD, July 22: The outbreak of Covid-19 has mostly affected the underdeveloped and less-developed countries. Pakistan – a developing country – also bore the brunt to some extent.

According to the World Bank, total poverty in Pakistan in the year 2021-22 was 39.2% and it might come down to 37.9% in 2022-23. The Pakistan Poverty Alleviation Fund (PPAF) is a government organization and its major aim is to reduce poverty across the country. Poverty in Punjab was estimated to be 16.3%, Sindh 24.6%, KP 27% and Balochistan 40.7%.

Chief Operating Officer (COO) of PPAF Nadir Gull Barech told WealthPK that they had taken an initiative to give free-interest loans to the people to start their own income generation activities and get out of the poverty trap.

The programme is financed by the International Fund for Agricultural Development (IFAD), BISP, State Bank of Pakistan, Kamyab Jawan Programme, and Microfinance Association UK. The interest-free loan program is implemented throughout the Pakistan including Islamabad, Gilgit Baltistan and Azad Jammu and Kashmir.

Nadir Gull Barech said the PPAF was supporting communities to access improved infrastructure, energy, health, education, livelihoods, finance, and develop resilience to disasters.

He said the Fund served the poorest and the most marginalized rural households and communities across the country providing them with an array of financial and non-financial services. He said as per estimates, a total of 3.8 million interest-free loans will be provided to 2.28 million households.

“Loans will be given to the people falling in the age bracket of 18 to 60. The programme implemented by 27 partners organization has been launched in more than 100 districts across the country. Among the beneficiaries, 53% are women [to get free-interest loan],” he said.

Nadir Gull Barech said interest-free loans on easy instalments were furnished through more than 700 loan centres set up across the target districts to reach out to the people. The loans range between PKR20,000 and 75,000 per borrower. The initiative is helping the underserved population of Pakistan to set up small enterprises or expand their existing small businesses to enhance their income and earn a decent livelihood.

“The programme is designed to catalyse change at the grassroots to pull people out of poverty through social mobilization, livelihood development and financial inclusion. It seeks to reduce dependence on social protection, helping families incrementally move from consumption support to asset transfers to interest-free loans,” he said.

Ghulam Kubra Bibi, a resident of Sheikhupura, got her first loan of Rs15,000 to purchase an embroidery press machine. She got a second loan of Rs30,000 for expansion of her business. She has paid off the entire loan and is earning Rs200,000 a month.

Another beneficiary Gull Hassan from Nasirabad district of Balochistan took a loan to start the livestock business. He took the last loan of Rs100,000 to expand his business. He now earns Rs150,000 per month.

Credits: INP-WealthPk