This refers to a news item, ‘Youth business loan scheme announced by PM’ (December 5). The launch of a business loan scheme for the youth by PM is highly commendable. The PM clarified that education was not a prerequisite for getting the loan, however, it will be recovered from beneficiaries’ within eight years. Further, the interest to be charged on the loan is 8% in which 1% will be recovered from the beneficiary and the remaining will be borne by the government.

I would like to suggest that instead of giving loan on interest basis why don’t these funds are provided on interest free microfinance basis to change the lives of poor families who wish to start new business. It is amazing that the recovery of this interest free microfinance is 100% and has been able to change numerous lives.

Furthermore, the PM has already decided that the government would now not wait for the outcome of the Riba case that is pending before the FSC (Federal Shariat Court) for the last 10 years and remains inconclusive as yet. Therefore, this is the right time to convert this interest based loan into something that actually works.


Karachi, December 6.