Muhammad Faisal Kaleem

Over two million interest-free loans have been disbursed under the Prime Minister’s Interest-Free Loan Programme over the last five years with 57% of such loans granted to women beneficiaries.

According to the documents available with Wealth Pakistan, the Poverty Alleviation Fund (PPAF) has disbursed a total of 2.34 million interest-free loans, improving the economic status of 74.6% of its beneficiaries.

In a welcoming move, 97.4% of the programme’s beneficiaries have successfully completed their repayments, reflecting strong financial discipline and effectiveness.

The documents revealed that 31% of interest-free loans were disbursed for commodity trading, 24% for livestock (poultry, fish farming), 20% for embroidery/handicrafts, 17% for services, 7% for manufacturing (light engineering, workshops) and 1% for agriculture/cropping.

Moreover, the PPAF has provided skill development and managerial trainings to 49,231 individuals, with 48% of women. Resultantly, 57% of such trained beneficiaries (76% women) are self-employed while 16% of trained individuals (29% women) are employed with others.

A PPAF official stated that the PM’s Interest-Free Loan Programme stands as a strong example of inclusive and sustainable financial empowerment. Beyond the impressive statistics, the initiative demonstrates how targeted economic interventions can trigger long-term social transformation at the grassroots level, he said.

By empowering women and small-scale entrepreneurs, the programme not only supports household incomes but also fosters community resilience, self-reliance and employment generation, he added.

Experts believe that this initiative has set a new benchmark for public sector-driven microfinance, ensuring that even the most marginalised individuals can access credit without falling into debt traps. The repayment rate of over 97% reflects not just financial responsibility but also the trust and ownership developed among beneficiaries.

The programme highlights how transparent mechanisms and community-based support can strengthen public confidence in government welfare schemes. Furthermore, the diversification of loan utilisation across productive sectors has enhanced rural economic activity and created value chains in regions previously neglected by commercial lenders.

Experts said with continuous focus on skills training and women’s participation, the programme is expected to build an ecosystem of inclusive growth where small entrepreneurs evolve into stable contributors to the national economy.

Credit: INP-WealthPk