Social Media Turned Into A Rumour Factory

                        Social Media Turned Into A Rumour Factory

I find it hilarious and amusing when different set of people on Social and Electronic medium criticise the recently launched Youth Business Loan Scheme, different set of people are coming up with different logic's and interpretation of the scheme without knowing the benefits and drawbacks of the scheme. Few days back wrote a blog on the loan scheme, must admit received a thunderous response but at the same time had to deal with unprecedented criticism from different quarters on Social Medium which actually surprised me and left me hurt. When I dug deep and checked the profiles of few criticizing, found  that most of them were sitting in cosy lounges of their homes in London, Dubai. Baltimore, Manchester, Abu Dhabi and list goes on but very few from Pakistan. Strangely enough those sitting in Pakistan were very reasonable in their argument and very polite as well but some how those sitting abroad were annoyed and very aggressive. ( May be unhappy because they couldn't get such an opportunity?? ).

Strange Questions are being raised regarding this scheme in Social and Electronic media, for Example 1) A Leading TV anchor asked how on earth Government shall arrange 100 billion rupees while country is going through economic crisis ??. Government planning to print new notes giving rise to already inflated inflation figures ??. 2)  A seasoned TV anchor declared it a violation of provincial autonomy ? 3) A leading news channel ran the story how come Government shall distribute 100 billion loans while allocating just five billion for the scheme ??. 4) Social Media became a rumour factory declaring it a political scheme? a scheme to oblige politically associated aides?, the ruling party trying to get political benefit?, why on earth "Maryam Nawaz Sharif" is heading the Loan Scheme?. 5) A Very mature writer and anchor raised the question who can  start a business with few lacs ?? Similarly Imran Khan called it a pre-poll rigging before the local bodies election ?? 6) Social Media was bombarded with rumours that Government is going to waste 500 billion rupees in coming 5 years, the youth has been made hostage  by giving them loans with 8% interest ??. What if business failed ?? What guarantees are there that people getting the Loans will utilise the loans for business purposes ??.

                                                         Hilarious Rumour's on SM

Now lets us dissect the queries one by one. 1) The answer to first Question is very simple that National Bank and Women Bank are going to give these loans (100 billion) with Government providing the additional mark up which is 5 billion rupees for the year 2013-14, already has been allocated in this fiscal year budget.  Government is neither going to borrow any money from banks either Government is going to print new notes for this purpose. 2)  This question literally laughed me off my chair, how can a loan scheme  endanger the Provincial Autonomy particularly after the 18th amendment where Provinces have been given the additional resources. If any of the province want to start it's loan scheme they can easily use their funds because after 18th amendment ample funds are at their disposal. In fact Punjab is already running many such schemes own their own, like Laptop , Ujala, Student Endowment Fund, Internship Program etc. Similarly KPK has recently introduced such kind of schemes in their province. 3)  As I have already mentioned that 5 billion is the additional markup that Government is going to pay while the rest 8%  shall be paid by the recipient of the Loan. 4) Now this is a very legitimate concern, scheme should be free from corruption and nepotism, loans should be dispersed across the board. Let me tell you with continuous surveillance of Independent Media its look highly impossible that we shall witness any major scandal or corruption charges. Secondly Banks are already enforcing stringent measures to implement this scheme, some very tough lines have been drawn if you closely monitor the criteria involved to get the loan. Finally State Bank will be acting as a watchdog to whole process of awarding the Loans. 5) Very Legitimate Question regarding Maryam Nawaz Sharif heading the whole scheme ?. I think the answer to this is very simple that it will take time for our political culture to grow, when we will be educated and cultured enough to trust the system and get out of this personality cult. Politicians do try to take the credit of Public welfare schemes as Obama took the credit of much trumpeted "Obama Health Care", Gandhi Family tried to take advantage of "Food Stamp Scheme"  launched recently. Still I do feel it would have served PMLN better if an independent head would have been appointed while Maryam Bibi still being the Co Chairman of the scheme. Having said all this, the way Maryam Nawaz Sharif working on this scheme is unprecedented I must admit, going through thousands of queries every day, visiting banks, responding to queries on Social Medium. This scheme may prove beginning of a new era for MaryamNS. Finally she publicly declared she wouldn't be taking any perks and privileges attached to the job, so it must be carefully monitored if she stick to her stance. 6) "Grameen Bank" a brain child of Dr Younis who went on to win the Nobel Peace Award and later awarded  USA  Congressional Gold Medal. Dr Younis started the idea by lending 27 US Dollar to a group of villagers in 1974 which went very well. Later he initiated a research program and started the Bengali Micro finance revolution. Similarly Dr Amjad Saqib started a micro finance scheme in southern Punjab with small loans of 25,000 rupees which received an unprecedented success, people now quote Dr Amjad Saqib wisdom and honesty at different forums. Punjab Government was so  impressed by Dr's wizardry that they asked him to run their schemes. The interesting fact about the above mentioned schemes is that there are hardly any defaulters. Similarly UK student Loan Scheme, US student and micro finance schemes, in fact these small loan scheme are beginning to become the backbone of economies. 7) For politicians criticising these schemes must be very  careful indeed as  we have already seen in May GE that people don't like criticism of Public welfare schemes, in fact appreciate that rulers are spending their money on their welfare as we  have witnessed in case of Metro Bus, Dannish Schools, Laptop Scheme etc. Intense criticism and opposition to these schemes backfired and resulted in their defeat . 8) Finally the rumours that 500 billion rupees is going to be lost in this scheme are unfounded and amateurish, as I have explained earlier the recovery of these loans runs in high 90's Worldwide. Secondly even if Government distributes 500 billion of Loans in next 5 years that hardly equals to 10% of banks lending. Government protecting the banks risk as well ( 5% ), those who think that this scheme is a joy ride they can easily get the loans and can do anything with the money without being asked many question should revisit their thoughts. Serious thought process has been involved in awarding of these loans, even more stringent measures are being involved to make proper utilisation of this money, finally the involvement of guarantor almost neutralises the banks risk.

Lets not politicise this scheme as already 3 million youth have acquired the forms, I am sure they know the stringent criteria attached to the scheme, I am damn sure all will not belong to the ruling party but what we can do is act as a watchdog, point out the smallest of the mistake committed by the Government, held them accountable if anything goes wrong. Big bulge of youth population is being given a  hope for their future, million families are pinning their hopes on this scheme, lets not criticise or politicise the future of millions on unfounded doubts.

PM Youth Progam: A Game Changer May Be?

                           PM Youth Program: May Be A Game Changer ?

Pakistan is going through worst ever economic crisis in it's 65 years of existence which infact is becoming an existential threat for the country, lawlessness, rampage corruption and job drought is making the lives of middle class families in particular, a living hell. I remain a strong critic of Benazir Income Support Fund which has actually turned this country into a bunch of beggars, with zero job creation and easy money pouring into families, infact not helping them in the long run rather is making them susceptible and vulnerable in an environment of cut throat competition.

PMLN as promised by their leader in his pre-election rallies has come up with a comprehensive plan for the skilled youth, low income groups, students education, Youth training program's etc. But I am more interested in "Business Loans", Qarz-e-Hasna Scheme", "Reimbursement Of Fee For Students".

In a country where hundreds of thousand  people  have become jobless in last 5-6 years, skilled youth with degrees have got no job opportunities it scares the hell out of me that in a country with huge bulk of young population ( 65% ), regrettably have nothing to do, it terrorise me even further when I see my country in chaos and in grip of repeated terrorist strikes. In this  era of mayhem and disarray this scheme seems to be breath of fresh air if you analyse it closely, more importantly if implemented honestly without political interference and merit is the kingpin while awarding these loans. 

Now let me explain, why I think this Youth Program can turn out to be a "game changer" if implemented honestly?. A   grace period of one year , 8% mark up on the loan, 6-7 years of payback period, if you count in inflation numbers, this loan scheme becomes a joy ride for the skilled youth, may turn them into a successful entrepreneurs in coming years. Now the real catch in these scheme is Government shell pay the additional mark up for the approved loan while the Banks first time in history of Pakistan shall invest on skilled youth rather on businessmen, politicians, feudal, Army backed ventures, real state tycoon's etc., meaning if we multiply the real numbers that runs into hundreds of billions. "Now this is totally unprecedented, never witnessed in history of Pakistan, only thing Government must be careful because State Bank shell be protecting the Banks investment so Government must make this scheme transparent and merit must be the driving force while awarding these loans".

Business Loans  will start with Rs. 5 billion this year, an  average of 1.25 million loan for the successful candidate. A staggering amount of Rs. 125 billion  has been allocated this year alone for the adept youth with Government paying  Rs. 5 billion in mark up to the banks, while 8% mark up will be borne by the youth, first year 100k skilled youth will get the Loans while if we go by these standards 500k in next five years, mind boggling 625 billion rupees shall be pumped into the economy, more importantly on efficient and able part of our society. Even if a eligible loan candidate hires two persons on average to run his business that becomes 200k new jobs a year and stupendous one million numbers in five years. Now even if we go by average size of a Pakistani family, a usual Pakistani household consists of 5 members, now you pick up your calculators, start multiplying  these numbers.

 Imagine a young doctor, pharmacist, engineer, a software genius, young entrepreneur with out of the world idea etc getting this loan at the very start of his carrier, establishes a small business in the beginning, we may witness a big change in coming years and decades, may revitalise the small to medium businesses in the country, importantly will pump hundreds of billion rupees into the ailing economy. 

Similarly Qarz-e- Husna Scheme for the poorest of the poor in the society, in fact this idea has already been successfully implemented by "Akhuat Foundation" by amazing "Dr Amjad Saqib" and carried forward by Punjab Government under the guidance of Dr Sahib under the banner of "Punjab Education Endowment Fund", you people will be astonished to know that the recovery of loans is close to 99% . This scheme shall cover startling 2.5 to 5 million people in the coming five years, 3.5 billion have been allocated for the scheme, multiply  with the households you will be amazed to see the number. 

Finally, the reimbursement scheme of student fee, for those students studying in HEC recognised public institutions doing their Masters and PhD, will cover 30,000 students yearly, Rs. 1.2 billion have been allocated annually. Deserving students studying in Public Universities and belonging to backward areas of the country given the priority.