Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular Letter No. 21 of 2020
July 10, 2020

The Presidents/CEOs,
All Banks/DFIs

Dear Sirs/Madams,

Prime Minister's Kamyab Jawan Youth Entrepreneurship Scheme

Please refer to IH&SMEFD Circular No. 08 of 2019 dated July 11, 2019, IH&SMEFD Circular Letter No. 06 of 2019 and IH&SMEFD Circular Letter No. 01 of 2020 regarding the captioned scheme.

  1. Government of Pakistan has approved revision in key features of Prime Minister’s Kamyab Jawan Youth Entrpreneur Scheme.
    The revised features of the scheme as approved by the government are reproduced below:
S. No Particulars Kamyab Jawan Program


  Eligibility Criteria

  1. All men/women holding CNIC, aged between 21 and 45 years with entrepreneurial potential are eligible. For IT/ E-Commerce related businesses, the lower age limit will be 18 years.

  2. Small and medium enterprises (startups and existing businesses) as per definition of SBP and owned by youth as per above mentioned age brackets are also eligible.

    For IT/E-Commerce related businesses, at least matriculation or equivalent education will be required.



  Loan size

Size of the loan is segregated into three tiers, as under:
Tier 1 (T1) loans- Rs 100,000 to Rs. 1 million
Tier 2 (T2) loans- Above Rs 1 million and upto Rs 10 million

Tier 3 (T3) loans-Above Rs 10 million and upto Rs 25 million


 Loan type

Long Term Loan for Machinery and Equipment / Working Capital Loan/ Running Finance, and Leasing of Business on wheels on 2/3/4 wheel locally manufactured vehicles.

4  Loan Tenor
Upto 8 years with maximum grace period of upto one year.


  Debt: Equity ratio

For New Businesses:
Tier 1 - 90:10
Tier 2 & 3 - 80: 20
For Existing Businesses:
Nil for all tiers
The Borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of loan.

6  Focus on Women
25% of the loans will go to women borrowers.


  Security Requirements

Security arrangements will be as under:
T1 loans: Clean; however only personal guarantee of the borrower
T2 & T3 loans: As per bank’s own credit policy


  Risk Mitigation

Government will bear credit losses (principal portion only) on the disbursed portfolio of the banks as under:
T1 loans: Upto 50%
T2 loans: Upto 20%
T3 Loans: Upto 10%


  Allocation in Budget

Finance Division shall allocate funds in each fiscal year’s budget as per estimates provided by SBP. Payment will be made on submission of consolidated claims of all banks by the SBP on quarterly basis.



Pricing for Working Capital & Term Loans:


Customer Pricing

Bank Pricing

Tier 1



Tier 2



Tier 3



11  Executing Agency
All Commercial, Islamic and SME banks are advised to come on board.
12  Sectors and Products
All sectors and products including agriculture.


  Application Form

The Form would be both in English and Urdu and require minimum essential information with simple format available on Government provided Kamyab Jawan portal.

The processing time will not exceed 30 days and will be stated clearly in the application form. Non-refundable form processing fee will be Rs. 100/- inclusive of NADRA online CNIC verification fee.



SBP will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website.


 Geographical distribution

Whole of Pakistan. In case of Balochistan, at least one branch of NBP will be designated per Division. All non-designated NBP branches will also provide and receive filled application forms and dispatch them to the nearest branches.


 Additional Measures

Executing Agencies (EAs) under this program should ensure following additional measures:

  • Criteria for assessing entrepreneurial potential should be developed and implemented.
  • In case of loan for existing businesses, a robust independent verification mechanism may be introduced to ensure proper utilization of loans.
  • Further, for new businesses, a robust mechanism for ongoing monitoring of the loans’ utilization should be developed and implemented.
All loans previously disbursed or approved under this scheme will be converted into the new parameters with effect from July 01, 2020.

  1. The banks are advised to gear up their systems for successful implementation of this scheme and to avoid any misuse of the scheme. Eligible borrowers may apply for the loans immediately after formal launch of the scheme by the Prime Minister’s Office.

Yours Sincerely,


(Dr. Mian Farooq Haq)


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