Government Initiatives Schemes History

Past overview




To overcome the soaring problems of unemployment and poverty, by fostering micro scale enterprising / income generating activities, in shape of soft (interest free) loans for socio-economic development in Khyber-Pakhtunkhwa.

Introduction to GI Schemes

  • GoKP approved the following 6 schemes in partnership with BOK for nurturing small & medium scale enterprising:
  • Bacha Khan Khpal Rozgar Scheme: To encourage socio economic development, provide platform for income & employment generation in socially marginalized sections of KPK through the provision of Soft Loans
  • Riwaiti Hunermand Rozgar Scheme: To revive traditional Artisanship / Skill Craftsmanship, through provision of Soft Loans.
  • Long Term Financing Facility for Industrial Development: To provide substantial opportunities to the private sector for investments, industrial development and exports promotions.
  • Roshni: In wake of the current situation of energy starvation in the province particularly and in the country overall, the scheme is aimed to provide substantial opportunities to the private sector for investments & industrial development in the sector of Solar Panels productions.
  • Khud Kafalat Scheme: To overcome the massive unemployment resulting from the effect of Terrorism, Devastating Floods and Economic Recession and to facilitate and promote entrepreneurship in order to generate economic activities in the province.
  • Youth Challenge Fund: To encourage local entrepreneurship in the Province and is purely aimed to plunge the feasible opportunities for the creation of entrepreneurship and jobs.
  • Merger of Government Initiatives Schemes On November 07-2013, GoKP, signed a new MoU with BOK, under which the three previous schemes i.e. Bacha Khan Khapal Rozgaar Schemes, Pakhtunkhwa Hunarmand Rozgaar Schme & Rawaiti Hunarmand Rozgaar Schmes have been merged into “Khud Kafalat Scheme”.
  • Government Initiative Schemes Commencement and Cut-Off Date
S.No. Scheme Commencement Date Cut Off Date
1 Bacha Khan Khpal Rozgar Scheme (BKKRS) 2011-02-15 15.02.2012 31.01.2013 (Ext)
2. Pukhtunkhwa Hunarmand Rozgar Scheme (PHRS) 12.09.2011 15.11.2012
3. Rewaiti Hunarmand Rozgar Scheme 2013-02-28 28.02.2013
4. Long Term Financing Facility (LTFF) 04.12.2012 30.06.2013 31.12.2013(Ext)
5. Khud Kafalat Scheme (KKS) 07.11.2013 28.02.2014
6. Roshni 06.03.2014 30.06.2014
7. Youth Challenge Fund(YCF) 13.11.2014 31.01.2015

Scheme Wise Funds Received

S.No. Scheme Amount (millions)
1. Bacha Khan Khapal Rozgar Scheme (BKKRS) 2,520
2. Pukhtunkhuwa Hunarmand Rozgar Scheme (PHRS) 1,033
3. Rewaiti Hunarmand Rozgar Scheme 165
4. Long Term Financing Facility (LTFF) 500
5. Khud Kafalat Scheme (KKS) 1,015
6. Roshni 300
7. Youth Challenge (YCF) 120
  Total 5,653
  Fund Revolved from Recovery to KKS 2,277


GoKP initiated this scheme in order to promote the development of Industrial Infrastructure in war battered and insurgency plagued province of KP and to encourage public-private partnership to revitalize and expand the industrial base of the province that would help channelizing energies toward prosperity and economic wellbeing. The financial support (total of Rs. 1.00 Billion) had been envisioned for the following: a. Labor intensive industries, export oriented and import substitutive. B. Green Field Projects i.e. Establishment of new enterprises, expansion / balancing, modernization and Replacement proposals that could generate new employment avenues.

Scheme Wise Funds Received

Particulars LTFF
Funds Received 500 Million
Applications Received 15
Applications Approved 6
Applications Declined 9
Applications Disbursed 6
Applications Pending 0
Cases Adjusted 0
Amount Disbursed 168Million


The scheme was launched by GoKP with BoK in order to harness in solar energy by providing soft term loans to the Industrial Sector involved in manufacturing Solar Panels but till deadline no applications has been received in this scheme after advertisement. It has been suggested to Secretary IC&TE for necessary amendments & fine tunings of the policies & target market in wake of the emerging market trends.

Particulars Roshni
Funds Received 300 Million
Applications Received 0
Applications Approved 0
Applications Declined 0
Applications Disbursed 0
Applications Pending 0
Cases Adjusted 0
Amount Disbursed 0
Current Balance 300 Million


The scheme was launched by GoKP on 05.03.2012 for advancing loans to Small and Medium Enterprises in the province in collaboration with KP Chamber of Commerce and Industry, Peshawar. Advances shall be provided for working capital requirements and purchase of machinery/equipment and balancing, modernization & replacement (BMR) as per 40% for Trade and Services Sector & 60% for Industrial Sector. Working Capital Loans: Working Capital loans shall be provided to SME and Trading & Services Sectors as under: Type Running Finance Maximum Loan Size - Trading & Services Sector Rs.300,000 - SME Sector Rs.500,000 Tenure 3 Years only Markup 9% per annum Security Two PGs and recommendation from KPCCI Demand Finance DF loans shall be provided to SMEs who intend to rehabilitate their existing units by additional machinery or fixed investment Type DF Maximum Loan Size Rs.1.5 million Tenure 5 Years Markup 9% per annum Grace Period 18 months Security Two PGs and recommendation from KPCCI, equitable mortgage


Launching Date November 13, 2014
Last date of Submission of Application January 31st, 2015
Total Allocated Fund Rs.120 Million
Fund Received Rs.120 Million
Fund Available for Disbursement Rs.115.200 Million
Loan Range Rs.200,000 to Rs.2,000,000
Application Received 1,418
Applications approved 113
Amount 36.514
Applications declined 1305

Applications Status (as of 29.11.2016)

Scheme Application Received Application Declined Approved Application in Process
BKKRS 28,507 9,263 19,244 -
PHRS 5802 3,679 2,123 -
RHRS 1204 593 611 -
KKS *73,125 >42,193 24,916 6015
YCF 1,418 1,305 113  
LTFF 15 9 6 -
Roshni - - - -
Total 110,071 57042 47031 6,015
*Pending applications from previously launched schemes, BKKRS, PHRS,RHRS, totaling 25,793 were merged into one Scheme, i.e. KKS.

Executive Summary of BoK Micro Finance Initiatives

The economic landscape of the province Khyber Pakhtunkhwa is characterized by a number of small & medium scales economic activities which are scattered throughout the province. However, financing & business needs of these entities previously had not been streamlined. The most eminent reason among many was not having a formal financial framework due to which most of the small scale entrepreneurial entities were left exclusive. Micro Financing is attributed as an effective driver in economic uplift. BoK, since 1995, despite stark challenges, felt a dire need to converge efforts on this informal but significantly potential sector. BoK for the mentioned purpose spearheaded indigenously in diversifying its scale of operations with a Financially Inclusive strategy to encompass the left outs of the formal financial circuit. A dedicated unit was set for the investment and uplift policies of the aforementioned sector and launched diversified sector-oriented products & services – primarily targeting rural base- in collaboration with local and international partners through financial & technical assistance:

  • Asian Development Bank (ADB)
  • International Fund for Agricultural Development (IFAD)
  • German Development Bank (KFW)
  • Swiss Agency for Development Cooperation (SDC)
  • Pak-Swiss SSEP
  • World Bank

In succeeding years, BoK’s micro-financing unit extended its portfolio from sector-based initiatives to individuals that had encouraged the informal sectors of self-enterprising: financially & entrepreneurially, that are now grown into sustainable cluster based ventures. Hitherto, BoK successfully brokered bilateral initiative with Government of Khyberpakhtunkhwa for inculcating micro scale sustainable socio-economic uplift via fostering self-enterprising. The comprehensively successful implementation of the initiative, throughout the province, procured formidable recognition to the services of BoK. The successful endeavor helped in implementing similar broad spectrum initiatives for catering to various individual needs. Apart from individuals, sector-based uplift programs i.e. Industrial Revitalization and Alternate Energy Production initiatives were executed by GoKP via BoK. BoK is also in liaison with GoKP for another pioneering milestone of launching Micro-Finance product under the Islamic injunctions that would prove to pay its highest dividends in the coming future. By leaps and bounds; the erstwhile unit of Micro-Financing has now transformed into a full-fledged division: Islamic Micro Finance and Government initiatives, with five operational departments and outreach to the most remote districts of the province. It is the untiring efforts, dedication, and acknowledgment of IMF& GID that it is in now acting as a catalyst in drafting the Foreign Aid Strategy to GoKP. Thus, BoK is now a pioneer public sector bank with a dedicated arm to provide financial and entrepreneurial-advisory and expertise related to Micro & Medium Scale Financing. The Bank is mandated by its Act to support socio-economic development processes Lack of institutional framework for delivery of micro credit 90% of provincial economy is based on micro enterprises with no access to Financial Services

  • Micro finance can provide profitable business opportunities to the bank
  • Provide impetus to economic activity at the gross root level through equitable distribution of resources

Mission Statement

To be the largest Micro Finance Institution in NWFP on sustainable basis.


  • Improved access of credit to low-income and disadvantaged segment of the society
  • Poverty alleviation through Micro Finance Services.
  • Contribute to the improvement of employment opportunities in the province.
  • Promote income generating activities with emphasis on smaller and diversified loans for women.

Outreach Mechanism

  • By targeting individual entrepreneurs and cluster based activities through field staff.
  • Delivery of financial services through RSPs and NGOs especially in rural areas.
  • Wholesaling of funds to NGOs and RSPs for on-lending.

Bank’s Past Microfinance

Sr #. Loan Type Cases Approved Amount Disbursed    
01 Micro Loans 15,106 784.172    
02 Group Loans 1,390 106.534    
03 SRSC 1 10.000    
04 Micro Domestic Consumer Loans (MDCL) 4,668 273.210    
05 Self Employment Scheme(SES) 829 129.115    
06 Motor Cycle Loans 573 23.867    
07 CNG KIT 40 1.130    
Total 22761 1328.028

BoK’s Specific Initiatives

  • Tea development Program at Shinkiari (Mansehra)
  • Eco Friendly Tourism at Mahodund (Swat)
  • Off season vegetables at Mattaltan (Malakand)
  • CCMA Charsadda (Cluster Based Intervention)
  • Sardaryab Fishermen Cluster
  • Pilot Projects on Women Saving & Credit Associations (Swabi & D.I. Khan)
  • Promotion of Agriculture Tools and Machinery (Mardan & Takhtbhai)

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