Great news if you are a small business owner or want to start a small business in Punjab. CM Punjab has recently announced the launch of a Karobar Card, or we can say a Business Card scheme, in the province. Under this scheme, the government will provide interest-free loans to small businesses to boost business activities in Punjab. If you are curious about the loan amount, duration, grace period, and other details, continue reading.
Karobar Card or Business Card Scheme Punjab
Under the Punjab Karobar Card scheme, small businesses will be able to get a loan ranging from Rs. 100,000 to Rs. 1,000,000. Another good thing is that it will be an interest-free loan granted for a period of up to 5 years. Not only this, but the small business owners will get a grace period of 3 months to ease off the burden.
Here are the Business Card scheme’s highlights:
- Loan Amount: Up to 1 Million Rupees
- Interest: No
- Period: Up to 5 Years
- Grace period: 3 Months
Keep in mind that this business card will not be used for payment in ten areas, including restaurants, so keep an eye on those areas. CM Punjab Maryam Nawaz also reviewed a proposal to provide loans on a preferential basis to selected commercial sectors as it was announced that the IT startups in Nawaz Sharif IT City will be able to get preferential loans.
Now, are you interested in starting a small business? You will find our blogs very helpful on small business ideas under 50,000 rupees as well as small business ideas under 1 lac rupees. If you are a woman and interested in entrepreneurship, read my blog on the best business ideas for women in Pakistan.
What is a Small Business?
Before we dive into the benefits, let’s have a look at what a small business is and its importance. According to the Small Small & Medium Enterprise Development Authority (SMEDA), a small firm is one having 50 or fewer employees and an investment of 25M rupees or less.
If we see the small and medium enterprises (SMEs) as a whole, they are the largest contributor to the employment generation in Pakistan with 78% of non-agriculture sector employment. Not only this, but the SMEs also contribute around 40% of GDP as well as 25% in overall exports. It shows the significance of the SMEs in the country. For reference, here are the contribution shares of the small and medium businesses in developed countries:
- China: 60%
- Germany: 57%
- Malaysia: 43.3%
- Japan: 55.3%
- Korea: 50%
Note: These statistics are taken from SMEDA.
Expected Benefits of CM Punjab Business Card Scheme
Now, many of you will be thinking what is the purpose of this scheme or what benefits can be achieved through this scheme. Let’s see the possible benefits below:
- First of all, it is a great initiative to support people to start or grow their businesses with loans without having to worry about the interest.
- Job creation, or increased employment opportunities, is another benefit, as the more businesses start and grow, the more workforce they need.
- This scheme can help elevate the living standards of many families, including the small business owners and the workers as well.
- Small businesses also contribute a lot to the country’s economy. So, promoting them means promoting the country’s economy as the government will be expanding its tax base.
- Do you know that many people have great ideas, but they don’t build a business due to money constraints? Well! This Business Card scheme will remove this barrier and give people a chance to bring their ideas into existence.
- These loans can help promote local manufacturing, resulting in less reliance on imported items. Due to this, there will be less burden on the precious foreign reserves that matter a lot to countries like Pakistan.
How to Get Investment for a Small Business?
You must be wondering if there are more ways to get investment for a small business. Well, there are many ways of getting investment for your small business in Pakistan. Some of them are as follows:
- Crowdfunding
- Angel Investors
- Venture Capitalists
- Bank Loans
- NGOs
- Microfinance Providers
- Bootstrapping
If you want to learn more about how to get investment for a small business in Pakistan, read our comprehensive blog now.
Keep in mind that many factors can lead to business failure, but if you have what it takes to become a successful businessman, you can minimize the chances of failure. Starting a business or growing it takes a lot of effort, but if you get the right tips to make your business successful, it can help a lot.
In the end, the announcement of CM Punjab about the Business Card scheme is quite interesting. It can yield fruitful results if implemented strategically. Stay tuned for further details about the scheme, as I will bring them to you as soon as I get them.
Are you looking to start a small business? Which one is it? Share your thoughts in the comment section below.
FAQs
A loan of up to Rs. 1,000,000 will be provided under the CM Punjab Karobar or Business Card scheme.
Yes, small business owners will get interest-free loans under this scheme.
The payback period for the Punjab Karobar or Business Card scheme is up to 5 years.
The government plans to launch this scheme, so stay tuned for official details about the application process.
As the scheme is yet to be launched, we will update you about the eligibility criteria once the government announces it.
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