Punjab Launches Rs 90 Billion Interest-Free Loan Package Under Asan Karobar Finance Scheme Phase-II

The Punjab government has launched the second phase of the Asan Karobar Finance Scheme, under which interest-free loans worth Rs 90 billion will be distributed to support small and medium enterprises across the province. According to Punjab’s Minister for Trade and Industry, Chaudhry Shafay Hussain, the initiative is designed to strengthen SMEs by improving access to finance and encouraging new business activity. He noted that the success of the first phase prompted the government to expand the program, ensuring more entrepreneurs can benefit from interest-free financing.

In the first phase of the scheme, businesses have been receiving loans between Rs 1 million and Rs 30 million depending on their operational needs and growth potential. The government has also introduced an additional financing option under the Asan Karobar Export Finance program, offering interest-free loans of up to Rs 50 million to SMEs engaged in export-related activities. This targeted support aims to increase provincial exports and enhance the competitiveness of local industries in international markets.

Shafay Hussain emphasized that expanding the scheme will stimulate economic activity, create new employment opportunities, and help stabilize the SME sector, which forms the backbone of Punjab’s economy. He added that the government is committed to ensuring transparent and efficient loan distribution to maximize the scheme’s long-term impact.

During a review meeting chaired by the Minister, officials assessed the progress of ongoing development projects under the Punjab Small Industries Corporation. The meeting also examined the implementation strategy for the second phase of the Asan Karobar Finance Scheme. The Managing Director of the Punjab Small Industries Corporation presented a comprehensive briefing on current development initiatives, financial programs, and the roadmap for expanding support to small businesses across the province.