Loans for Overseas Workers: Govt Launches Rs1 Million Loan Scheme
- Abeera Marium Siddiqui
- January 9, 2025
- 10:24 am
- 38
- Business
The government has rolled out an innovative plan to provide loans for overseas workers. The plan aims to make it simpler for individuals to secure funds for skill training, travel, and settlement expenses. As part of the Prime Minister’s Youth Business and Agriculture Loan Scheme, this initiative aims to empower those seeking employment opportunities abroad by offering financial support tailored to their unique needs. By focusing on these loans for overseas workers, the government underscores its commitment to helping skilled professionals achieve their goals on an international scale.
Eligibility Criteria for Loans
Workers between 21 and 45 years of age who hold a valid job offer or have been recruited through licensed Overseas Employment Promoters are eligible to apply. To ensure greater accountability, the loan will be registered jointly under the names of the overseas worker and a family member residing in Pakistan. Borrowers also benefit from a flexible five-year repayment plan. It is payable through equal monthly installments—making the loan both practical and easily manageable.
Expanding Opportunities for Youth
Since its launch in January 2023, the Prime Minister’s Youth Business and Agriculture Loan Scheme has delivered significant financial assistance to young entrepreneurs. By October 31, 2024, the program had disbursed Rs123.06 billion to 249,053 borrowers. To make funds even more accessible, the scheme offers reduced markup rates. This encourages a broader range of individuals—especially the youth—to leverage these opportunities.
Introducing Laptop Financing Under Tier 4
To extend its reach, the Economic Coordination Committee (ECC) approved a new Tier 4 component. It focuses on providing laptop financing to students, freelancers, and entrepreneurs. Under this initiative, eligible individuals can access the following tiers of laptop loans:
- Basic laptops: Rs150,000
- Medium-level laptops: Rs300,000
- Advanced laptops: Rs450,000
Applicants aged 18 to 30 years can repay the loan over four years at a 0% markup. With an 80:20 debt-to-equity ratio and a 29% risk mitigation provision on a first-loss basis, this laptop financing scheme ensures a smooth and affordable borrowing process.
Prioritizing Overseas Workers
The Finance Division emphasizes the importance of focusing on loans for overseas workers pursuing job opportunities abroad. This support not only covers essential expenses but also makes the journey to international employment more attainable. In addition, a proposed Tier 5 initiative aims to expand the scheme further, with various stakeholders calling for its quick implementation.
Budget Allocation and Long-Term Vision
Supported by a 10-year strategic plan, the government has earmarked Rs8.6 billion for the current fiscal year to maintain both the loans for overseas workers and the Tier 4 laptop financing component. The Prime Minister’s Youth Business and Agriculture Loan Scheme continues to highlight the government’s dedication to empowering youth and skilled workers through easily accessible, thoughtfully structured financial programs. By prioritizing these initiatives, Pakistan sets a strong foundation for economic growth and international collaboration.
