Peshawar: In a significant move to bolster economic development and reduce poverty, the Khyber Pakhtunkhwa (KP) government has initiated the Interest-Free Ehsaas Loan Scheme. This program is designed to support small businesses and individuals aiming to construct homes within the province.

According to Zameen.Com, the scheme was deliberated in a meeting at the Civil Secretariat, presided over by the Advisor to the Chief Minister on Finance, Muzammil Aslam. Other attendees included the Minister for Housing Khyber Pakhtunkhwa, Dr. Amjad Ali, Special Assistant to the Chief Minister for Technical Education and Vocational Training, Tufail Anjum, Secretary of Zakat, Nazar Hussain Shah, and additional relevant stakeholders.

The Ehsaas Loan Scheme will facilitate the provision of interest-free loans specifically tailored for small enterprises and residential construction. Initially, the scheme will distribute Rs 1 billion, offering loans up to Rs 5 lakh per applicant, to be repaid over a maximum of five years without interest.

The meeting emphasized the scheme’s aim to empower local citizens by encouraging entrepreneurship and enabling home ownership, which are vital components in the strategic plan to alleviate poverty across the region. The initiative is supported by the Akhuwat Organization, a notable entity in the realm of interest-free microfinancing.

Advisor Muzammil Aslam underscored the importance of the scheme as a mechanism for generating employment and enhancing the provincial economy. He further directed that all stakeholders finalize their Memorandum of Understanding (MoU) by the end of the current month to ensure the program’s prompt and effective execution.

This initiative is part of a broader strategy previously established by the 2022 KP government to offer interest-free loans, demonstrating a continued commitment to fostering a sustainable and prosperous future for the inhabitants of Khyber Pakhtunkhwa.