Punjab’s Chief Minister, Maryam Nawaz Sharif, has launched the Assan Karobar Finance Scheme, an initiative that will assist small and medium enterprises (SMEs) across the province. This program is expected to drive economic growth, create job opportunities, and strengthen key sectors like agriculture. By providing financial assistance according to various business requirements, the scheme aims to modernize Punjab’s entrepreneurial landscape.
Let’s take a closer look at the scheme’s objectives, structure, benefits, and how you can apply.
What is the Assan Karobar Finance Scheme
Approved by CM Maryam Nawaz Sharif, the Assan Karobar Finance Scheme will support entrepreneurs in Punjab. It provides financial assistance to help businesses start, expand, or upgrade. Whether it’s for equipment or logistics, the scheme offers solutions that meet the specific needs of different businesses. The program is in line with the State Bank of Pakistan (SBP) regulations, ensuring a sustainable approach to economic development and job creation.
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Objectives of the Finance Scheme
The scheme will:
- Empower entrepreneurs by offering financial assistance.
- Modernize business infrastructure for better productivity.
- Create job opportunities to tackle unemployment.
- Support industries like agriculture, manufacturing, and services.
These goals are set to make a significant impact on Punjab’s economy.
How the Scheme Works
The scheme offers two types of loans to cater to different business needs:
- Tier-1 Loans: Unsecured loans up to Rs5 million, requiring only personal guarantees. These loans are perfect for small businesses.
- Tier-2 Loans: Secured loans ranging from Rs5 million to Rs30 million, aimed at larger enterprises with higher funding requirements.
Repayment Terms:
- Loans are repayable over five years.
- New businesses (Greenfield) get a six-month grace period, while existing businesses (Brownfield) have three months.
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Eligibility Criteria:
- Applicants must be aged 25-55 years.
- They must have a clean credit history.
- They should own or rent a valid business location.
Introducing the Assan Karobar Card
The Punjab government has also launched the Assan Karobar Card, which offers interest-free loans up to Rs1 million. This card simplifies financial transactions and ensures transparency in how funds are used.
Features of the Assan Karobar Card:
- Supports digital transactions via mobile apps and point-of-sale systems.
- Loans are provided for a three-year term with a three-month grace period.
This card aims to support over 100,000 small businesses, helping them stay competitive in the market.
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Key Benefits and Support
The scheme provides several additional benefits to entrepreneurs:
- Interest-Free Loans: Small entrepreneurs can access loans to overcome financial barriers.
- Subsidies and Advisory Support: Capital subsidies up to Rs5 million for solar equipment and cleaner technologies, along with advisory services to help businesses make informed decisions.
- Industrial Estate Development: New industrial zones are being set up in cities like Sialkot, Gujrat, and Quaidabad, with a focus on relocating tanneries to reduce pollution and boost leather exports.
These benefits create an environment where businesses can thrive.
Plans for the Future
The Punjab government plans to launch Phase-II of the Assan Karobar Finance Scheme in 2025-26, with a Rs100 billion budget.
Key features of Phase-II:
- Rs379 billion in loans.
- Support for an additional 24,000 SMEs.
This expansion shows the government’s commitment to building a stronger economic foundation for long-term growth.
How to Apply
The application process is simple:
Eligibility:
- Be a resident of Punjab, aged 25-55 years.
- Own or rent a business location.
- Have no history of defaults or poor credit.
Steps:
- Visit the official portal or contact the helpline.
- Submit documents like identity verification, business details, and financial statements.
- Wait for approval after eligibility checks.
The process is transparent, ensuring that the right businesses get the necessary assistance.
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Contact Information
For more details or assistance, you can reach out to:
- Email: contact@karobarcard.pk
- Helpline: 051 – 111 962 962
The support team is available to guide you through the application process.
Final Thoughts
The Assan Karobar Finance Scheme is a significant step toward building a strong entrepreneurial ecosystem in Punjab. With interest-free loans, capital subsidies, and modern industrial infrastructure, this scheme helps SMEs grow and contribute to the province’s economy. If you’re an entrepreneur looking to expand your business, don’t miss out—apply today!
Muhammad Siddique Ali Ansari is a distinguished authority in the field of social welfare and poverty alleviation, specializing in Pakistan’s Ehsaas program and the Benazir Income Support Program (BISP). With a wealth of experience spanning over 5 years, Muhammad Siddique Ali Ansari’s work combines rigorous research with practical implementation, providing invaluable insights into effective poverty reduction strategies. A sought-after speaker and trusted advisor to policymakers, she is dedicated to creating a more equitable society. Follow her on LinkedIn and Twitter for the latest updates on her impactful contributions to social welfare.
