Optimizing the Role of PM’s Youth Business & Agriculture Loan Scheme (PMYBALS) towards achieving UN SDGs through Financial Inclusion and enhancing Outreach: A Case of SMEs in Pakistan

  • Faheem A. Qureshi
  • Dr. Qaiser Ali Malik

Abstract

SMEs are crucial to the growth of the national economy, the creation of jobs, and the eradication of poverty. This sector of the economy is thought to be its cornerstone. More than 5 million small and medium-sized businesses (SMEs) call Pakistan home; together, they generate 40% of the country's GDP and 25% of all exports. Among the largest obstacles facing Pakistani SMEs has been access to financing. Bank loans to SMEs fell steadily from 15% in 2008 to 7.3% in 2023 as a share of private sector lending. With a gloomy progress on achievement of UN SDGs in Pakistan, explicitly, on-track: 20%, limited progress: 52%, and worsening: 28%. Pakistan’s inadequate progress on the achievement of UN SDGs made it incumbent upon the Government to introduce a scheme that ensured financial inclusion and outreach at grass root level of the society. However, despite best intentions, features and incentives offered by the PM’s Youth Business & Agriculture Loan Scheme (PMYBALS), visible results in terms of reducing the demand and supply gap have still not been achieved. Taking cognizance of the Pakistan’s large population of 241.5M, only 0.03% (71,107) could be benefitted from the PMYBALS scheme despite its highly attractive features. By identifying the gaps in delivery of the PMYBALS scheme, this paper incorporates workable solutions to optimize the contribution of the PMYBALS scheme towards achievement of the intended objectives as well as UN-SDGs. Recommendations are targeted at Policy and Operational Levels with the objective to reap the maximum benefits from PMYBALS scheme in terms of Financial Inclusion and Outreach. In anticipation of our contribution in terms of implementation of the given suggestions, our case study will contribute towards achievement of UN-SDG numbers 1 (No Poverty), 3 (Wellbeing), 8 (Economic Growth), 9 (Industry, Innovation & Infrastructure), 10 (Reduced Inequalities), 16 (Peace, Justice & Strong Institutions), 17 (Partnerships for the Goals), as well as considerable progress in the current status of achievement of UN SDGs for Pakistan.

Published
2024-11-06