PESHAWAR - The Bank of Khyber (BoK) will disburse 60 per cent finances to business entrepreneurs and industrialists of Khyber Pakhtunkhwa out of the total of 30 billion rupees allocated by the bank for business and industrial loans.

In addition, under a new scheme of industrial development, initiated by Khyber Pakhtunkhwa Government, an amount of one billion rupees will be granted to Khyber Pakhtunkhwa industrialists as loan money at a subsidised mark up rate of 9% for a period of seven years. This scheme will commence from December 4, revealed Bilal Mustafa, Managing Director of BOK.

He was talking to Hazara based business entrepreneurs, government contractors and industrialists at a meeting held at the main branch of BoK, Abbottabad Friday. The head of Islamic Banking Division of BoK Headquarters Office, Peshawar, Kamran Masood, the branch Manager Syed Mazhar Shah and other concerned officers of the bank were also present.

The MD told that paid up capital of the bank would rise from Rs.8.2 billion to 10 billion by the end of next year while the number of its branches has increased from 34 to 80 during the last three years and this strength would reach to 100 by the next financial year.

He admitted that the present Government of Khyber Pakhtunkhwa was extending full cooperation, which paved the way for rapid growth of the bank not only in Khyber Pakhtunkhwa but throughout the country and it all happened due to the policies, recognized banking principles, innovative facilities and purely professional working of the bank.

He said that the bank was setting up separate branches for Islamic banking while Islamic Banking Sections were also available in all conventional branches. He said that BoK was successfully operating four major employment schemes launched by the provincial government which include Bacha Khan Akhpal Rozgar Scheme, Skilled employment Scheme, Skilled (traditional) employment Scheme and Industrial Development Scheme. He said that under Bacha khan Scheme a huge amount of Rs.1.75 billion has so far been released as interest-free loan money purely on merit basis to unemployed youth of the province for establishing their own enterprises. The encouraging feature of these loans is that in 99.5% cases the borrowed money was being repaid to the bank as per the schedule, he disclosed.

In response to a question, Mustafa made it clear that the bank never accepted any political pressure or recommendations for issuing any such loan and the provincial government had accepted the bank’s conditions in this regard prior to initiation of these schemes.

The Abbottabad branch manager Syed Mazhar Shah said on this occasion that as many as 2526 loan applications were received by the main branch and out of them 1600 were found eligible for the loan and the finances have been disbursed to them. The MD also sought suggestion from the participants for better facilities and performance of the bank and assured to give serious consideration to the proposals.