Punjab Small Industries Corporation launched a scheme titled “Rural Industrialization Programme” (RIP) approved by the Government in May 1986 with the condition that the entire loan of 220.00 lacs would be made available by the Corporation own resources and the Provincial Government will only pick up interest subsidy through Annual Development Programme (ADP).
Dutch Government with the approval of Pakistan Government to obtained Rs. 15.00 Crore as grant in aid under their financial and technical assistance programme with the conditions that an equal amount would be provided by the Pakistan side for the above schemes.
Due to resource constrained, the Government could not provide the necessary funds, hence they allowed PSIC to retain the advances provided to it as loan for the development of industrial estates in the Province and utilized the same as Punjab Government’s equity towards the Dutch Assistance Programme. However the mark-up on Government interest comes to about 15% p.a and the loan is being disbursed to the prospective entrepreneurs at subsidized mark-up of 7%v per annum, the Provincial Government agreed to provide subsidy of 8% to meet the differential through a scheme titled “Subsidy on Rural Industrialization Programme & Self Employment” which was approved by the Provincial Government in May, 1988.
PSIC launched Rural Industries Loan Funds Scheme in 1983-84 to 1985-86 with the approval of PDWP in its meeting held on 29-10-1983. A sum of Rs. 190 lacs was approved to be provided through ADP Allocation. The scheme was to gear up industrialization in the Rural Area to stop exhaust of the Rural Population to the Urban Area by creating more and better job opportunities for the Rural Population nearer to their homes. It was decided that through this funds, credit facilities be provided to the prospective entrepreneur, desirous of making transaction from middle level agricultural / Trading Sector / Petty Village Artisans to industries by making use of the package of technical, managerial, advisory and financial in puts provided by the Punjab Small Industries Corporation.
CHIEF MINISTER’S SELF-EMPLOYMENT SCHEME (CMSES)
The Chief Minister Punjab, encapsulating his vision to alleviate the poverty in the province decided that Punjab Small Industries Corporation (PSIC) would develop a Micro Finance Self Employment Scheme for unemployed youth of Punjab, targeting especially the skilled Diploma Holders of TEVTA, PVTC, Sanatzar’s of Social Welfare Department or other Technical Training Institutes with an appropriate share of Female Trainees by using the services of Micro Finance Institutions through a transparent procedure.