Loan for Overseas Pakistanis

Pak ambassador announces interest-free loan scheme for expats

By Jamil Khan @ The Gulf Today-Sharjah, May 28, 2013

Abu Dhabi: Pakistani expatriates in the UAE will soon have access to an interest-free loan facility and officials have vowed that this will further help to open up new economic ventures for them.
Addressing a gathering at the embassy in Abu Dhabi, Jamil Ahmed Khan, Pakistan Ambassador, said that they have gotten approval as well as completed the arrangements for the scheme that will soon be launched.
“Members from the community who send money home are eligible to obtain the facility. The loan amount they will be eligible for is 10 per cent of the amount they have sent home in the last one year,” he said.
He also added that the loan, made out in Pakistani currency, will be sanctioned through a one-window system for which the remitter would be required to submit attested proof of amount remitted, a copy of the National Identity Card for Overseas Pakistanis (Nicop), their passport and a guarantee that the loan would be returned in five years.
He pointed out that the Government of Pakistan is paying an interest of 8.5 per cent on the loans taken from foreign donors in foreign currency.
“In the proposed loan scheme, the government will be extending interest-free loans equivalent to 10 per cent of their yearly remittances but in Pakistani currency. This way the net effect/burden on the national exchequer will only be of 1.5 per cent in terms of Pakistani rupees and on the other hand the incentive will result in substantial increase in foreign remittances. Moreover, the loan taken will generally be utilised in some direct or indirect economic activity,” he added.
The ceremony was attended by a large gathering of community members and was arranged at the embassy to award commendation certificates to those who sent a substantial amount as remittance to Pakistan last month.
“More than ever, overseas Pakistanis are showing an interest in sending their hard-earned money to Pakistan which is a clear demonstration of their patriotism and can be attributed to the support of the economic sector,” he said.
The initiative of awarding commendation certificates to foreign exchange remitters is the first of its kind and is aimed at boosting the number of remittances from the UAE.
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