KARACHI: The National Bank of Pakistan (NBP) continues to almost exclusively support the Prime Minister’s Youth Business Loan (PMYBL) scheme, as 17 other banks collectively contributed hardly four per cent to overall lending under the scheme launched in 2013.
The prime minister recently expressed his dismay at the management of the PMYBL scheme and directed NBP to improve its performance.
A report issued by the State Bank of Pakistan (SBP) on Thursday showed 75pc loans were disbursed in Punjab, which is the stronghold of the ruling party.
“As of June 30, 2016, total disbursements by banks were to the tune of Rs8.14 billion, out of which Rs7.77bn were disbursed by NBP,” said the SBP report.
NBP has so far disbursed 96pc of total loans while the remaining 17 banks disbursed 4pc.
The report said that out of the cumulative number of received applications by the end of June, 75pc were from Punjab, 9pc from Khyber Pakhtunkhwa and Sindh each, around 2pc from Azad Jammu and Kashmir (AJK), Islamabad and Balochistan each and 1pc from Gilgit-Baltistan (GB).
Out of the total 71,644 complete applications received by banks, 86pc belonged to male applicants, the SBP report said.
The maximum share of female applicants was in the Islamabad region (23pc) while the lowest was in Balochistan (8pc).
The share of female applicants was 14pc in Punjab, 13pc in KP, 13pc in Sindh, 16pc in GB and 1pc in AJK.
During the April-June quarter, fresh disbursements amounted to Rs716 million, recording growth of 10pc over the preceding quarter.
Under the PMYBL scheme, loans up to Rs2m are being provided through the banking system at service charges of 6pc per annum to unemployed youth for establishing or extending business enterprises. The rate of return for banks working as executing agencies is the one-year Karachi Inter-Bank Offer Rate (Kibor) plus 500 basis points, or 5pc, with Kibor to be reset every year.