Prime Minister’s Kamyab Jawan Scheme

Kamyab Jawan Scheme

The Prime Minister’s Kamyab Jawan Scheme (PMKJ) is a comprehensive youth empowerment program initiated by the Government of Pakistan to address the challenges of unemployment and underemployment among the country’s burgeoning youth population. The scheme aims to provide young Pakistanis with the necessary skills, training, and financial resources to start and grow their own businesses, fostering entrepreneurship and innovation across diverse sectors.

Key Components of the PMKJ

The PMKJ encompasses a multifaceted approach to youth empowerment, encompassing various initiatives and programs tailored to the specific needs of Pakistani youth. The scheme’s key components include:

• Skills Development and Training: Providing vocational training and skill development programs to equip youth with the expertise required for employment in high-demand industries.
• Entrepreneurship Support: Facilitating access to financing, mentorship, and business advisory services to support young entrepreneurs in establishing and expanding their ventures.
• Job Placement and Internship Opportunities: Connecting qualified youth with job opportunities and internship programs, bridging the gap between academia and industry.
• Digital Literacy and Technology Empowerment: Promoting digital literacy and providing training in emerging technologies to prepare youth for the demands of the digital age.

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Impact and Achievements

Since its inception, the PMKJ has made significant strides in empowering Pakistani youth and contributing to the nation’s economic development. The scheme has provided training and support to millions of young individuals, enabling them to secure employment, start their own businesses, and contribute to the country’s economic growth.

The PMKJ has garnered widespread recognition for its positive impact on Pakistani youth and the national economy. The scheme has been lauded for its innovative approach, its focus on sustainability, and its commitment to empowering young women and individuals from disadvantaged backgrounds.

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Eligibility Criteria:

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

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

Focus on Women:

• 25% of the loans will go to women borrowers.
• 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.
• Loan Tenor:
• Up to 8 years.

Loan size:

• Size of the loan is segregated into three tiers, as under:
• Tier 1 (T1) loans- from Rs 100,000 to Rs. 1 million.
• Tier 2 (T2) loans- Above Rs 1 million and up to Rs 10 million.
• Tier 3 (T3) loans-Above Rs 10 million and up to Rs 25 million
• Grace Period:
• Grace period of up to one year (subject to the size and nature of the business/loan)..

Debt to Equity ratio:

• For New Businesses:
• T1 – 90:10.
• T2 & 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 the loan.

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.
• How to apply:
• The applicant shall apply directly via Prime Minister Kamyab Jawan portal i.e

Pricing:

Pricing for Working Capital & Term Loans: