Peshawar - The Khyber Pakhtunkhwa government has launched a long-term, interest-free microfinance scheme for entrepreneurs to support small businesses and improve livelihoods in the merged districts.
According to a press release issued on Tuesday, the initiative—which spans 13 years (2021–2034)—has already made substantial progress, with 66,557 individuals benefiting from the program so far, while an additional 22,152 are currently receiving financial support under the scheme.
The programme provides interest-free loans ranging from Rs25,000 to Rs75,000, with a flexible repayment period of up to 36 months. This structure is designed to ensure that recipients can repay the loans in easy instalments without the burden of interest, making it especially accessible to low-income and underprivileged populations.
The project is being implemented by the Khyber Pakhtunkhwa Small Industries Development Board (SIDB), with a total allocation of Rs2.007 billion.
Operational execution is being carried out in partnership with Akhuwat Foundation Pakistan, one of the country’s most trusted microfinance institutions. Currently, 36 Akhuwat branches are operating in various merged districts, enabling local residents to apply for loans close to home.
The scheme caters to a wide range of economic sectors. Beneficiaries have used the funds to start new businesses, expand existing enterprises, purchase essential equipment and machinery, and invest in agriculture and livestock development.
This multi-sectoral approach ensures that people from all walks of life—particularly those from rural and economically marginalized backgrounds—can benefit from financial inclusion.
Sikandar Shah, Monitoring and Evaluation Officer of the SIDB, recently conducted an official visit to Akhuwat branch offices in Bajaur district, D I Khan, and Lakki Marwat.
During his visit, he reviewed the implementation and progress of the Interest-Free Microfinance Scheme for Entrepreneurship Development in the merged areas.
He praised the program as a cornerstone of inclusive development in the newly merged districts, recognizing its role in empowering local communities by providing accessible financial resources to aspiring entrepreneurs.
The initiative not only promotes economic participation at the grassroots level but also reflects the provincial government’s broader vision of fostering self-reliance, employment generation, and sustainable economic growth.
Through its support for small businesses, agriculture, and livestock sectors, the scheme is paving the way for long-term prosperity and financial independence in the region.
Local beneficiaries have expressed their appreciation for the initiative, noting that it has not only provided financial support but also the confidence and tools needed to build a better future for their families and communities.
Sikandar Shah expressed hope that, with continued implementation and effective monitoring, the scheme would transform thousands of lives and contribute to the socioeconomic development of the merged districts in the years to come.
