According to a local publication, the Federal Cabinet has decided to reduce the guarantee for Kamyab Pakistan Program (KPP) loans from 100% to 50%.
On the request of the Governor of the State Bank of Pakistan (SBP), Dr. Reza Baqir, the decision to reduce the guarantee was made.
Banks, DFIs, and Pakistan Mortgage Refinance Companies are all covered by the guarantee (PMRCs). On July 16, 2021, the Finance Division requested that the ECC approve the Kamyab Pakistan Program.
According to a local publication, the Federal Cabinet has decided to reduce the guarantee for Kamyab Pakistan Program (KPP) loans from 100% to 50%.
On the request of the Governor of the State Bank of Pakistan (SBP), Dr. Reza Baqir, the decision to reduce the guarantee was made.
Banks, DFIs, and Pakistan Mortgage Refinance Companies are all covered by the guarantee (PMRCs). On July 16, 2021, the Finance Division requested that the ECC approve the Kamyab Pakistan Program.
Dr. Reza Baqir, Governor of the SBP, advised that government guarantees for loans be kept at 50% to safeguard the credit market’s long-term viability.
It was also suggested that permission from the SECP be necessary before direct debit could be used. Both ideas were accepted by the ECC.
As a result, the applicable interest rate for banks will rise by 0.50 percent. The ECC accepted the summary of the Kamyab Pakistan Program after a lengthy deliberation. On July 27, 2021, the Federal Cabinet ratified the ECC’s decision.
