Peshawar: According to media reports, the Khyber Pakhtunkhwa Cabinet approved a PKR 6 billion subsidy scheme for Small and Medium Enterprises (SMEs) under the Industrial Policy 2020 on Wednesday (January 5).
Read more: Largest fossil fuel reserve discovered in KP
The cabinet meeting was chaired by Chief Minister (CM) Mahmood Khan, and it was attended by the chief secretary, ministers, and administrative secretaries. The subsidy scheme will have two components, according to Special Assistant to Chief Minister (SACM) on Information Barrister Mohammad Ali Saif: Raast Working Capital Financing Scheme and Raast Modernisation Financing Scheme for SMEs. He went on to say that the scheme was put in place to help SMEs have access to loans.
The financial facility, according to the CM’s assistant, will provide liquidity to sustain enterprises and related employment while also stimulating the expansion of existing and new businesses. The State Bank of Pakistan (SBP) will support PKR 1.2 billion in annual distributions under the initiative through 2026. SME funding would be limited to a maximum of PKR 2 million and a minimum of PKR 1 million. The initiative will be implemented by the Bank of Khyber in collaboration with the Industries Department.
For more updates, stay tuned to Sky Marketing.