The Khud Mukhtar Program (Self-Reliant Program) is a major effort by the Government of Pakistan to help poor and struggling people. This includes families with low income, women, young people, and those with disabilities, to become financially stable.
Instead of just giving out cash handouts (like traditional aid), this program aims to empower people. It gives them the money they need to start their own small businesses so they can truly become financially independent.
1. What is the Khud Mukhtar Program?
The Khud Mukhtar Program is a plan to reduce poverty and make people stronger. It is mainly run under the Benazir Income Support Program (BISP). This program works with special banks (microfinance banks) to give out small loans that have no interest to the people who need them the most.
Objectives of Khud Mukhtar Program
- Promote Self-Employment: To encourage beneficiaries to transition from being aid recipients to becoming self-employed entrepreneurs.
- Provide Interest-Free Loans: To offer 100% interest-free (Shariah-compliant) financing for enterprise creation.
- Encourage Poor People: To support women, widows, youth, and differently-abled individuals in securing sustainable livelihoods.
- Restore Dignity: To allow poor individuals to live with economic respect and dignity, rather than relying solely on charity.
Program Details:
- Loan Amount: Typically ranges from PKR 50,000 up to PKR 150,000.
- Interest Rate: 0% (Completely Interest-Free).
- Repayment System: Flexible installment schedules (monthly or quarterly), designed to match the income cycle of small businesses.
- Priority Groups: Women, widows, youth, and differently-abled persons.
2. Who is Eligible to Apply For Khud Mukhtar Program? (Eligibility Criteria)
To be considered for the Khud Mukhtar Program, applicants must generally meet the following conditions:
- BISP Registration: The applicant’s family must be registered in the BISP database.
- Poverty Score (PMT): The family’s Poverty Means Test (PMT) score must fall below a specific threshold set by the government, confirming low-income status.
- Identification: Must possess a valid National Identity Card (CNIC).
- Targeted Demographics: While open to all poor, there is a strong preference and dedicated support for women, widows, and persons with disabilities.
3. How to Apply for the Khud Mukhtar Program (Application Process)
The application process is typically initiated through the BISP framework and involves local interaction with field offices:
Step 1: Visit the BISP Office
- Visit your nearest BISP Tehsil Office or the specific Khud Mukhtar Counter established for this program.
Step 2: Take and Fill the Form
- Obtain the official loan application form.
- Fill in all personal and financial details accurately.
Step 3: Required Documentation
- Attach the necessary documents to the completed form:
- Original and copy of the CNIC.
- Two passport-sized photographs.
- Your mobile number (registered on your CNIC).
- A simple Business Plan or a brief description of the micro-enterprise you intend to start or expand with the loan money.
- If applicable, a Widows’ Certificate (for widows) or a Disability Certificate (for disabled persons).
Step 4: Submission and Verification
- Submit the form and documents to the dedicated counter.
- Complete the Biometric Verification process on-site.
- BISP and NADRA will conduct a thorough verification of your poverty score and personal information.
Step 5: Loan Approval Notification
- Upon successful verification and approval, you will receive an SMS notification detailing when and how the funds will be disbursed to you (usually via a partner bank or mobile wallet).
4. The Benefits of the Khud Mukhtar Program
The program offers a sustainable exit strategy from poverty and promotes long-term national growth:
- True Empowerment: Because the loan has no interest, the person who borrowed the money gets to keep all of their business profit. This makes it much faster and easier for them to become financially independent.
- Helping Women: The program strongly encourages women to join the economy. We know that when women earn money, the whole family benefits, especially in areas like their children’s health and education.
- Local Economic Growth: By encouraging people to start small local businesses, the program helps money move around in their communities, leading to more economic activity and new job opportunities right where they live.
Read More: https://dlimsportal.com/asaan-karobar-finance-scheme-2025/
