ISLAMABAD - Coordinator to Federal Tax Ombudsman (FTO) Meher Kashif Younis on Thursday said “Nano” loans lead to income generation at the grassroots level, contributing to economic growth besides generating ample job opportunities across the country.
Speaking at a round table conference on the “Impact of Nano loans on economic growth” held under the aegis of Gold Ring Economic Forum, a strategic think tank, he said Nano loans, also known as microloans or small-scale loans, have several positive impacts on the economy world over, said a news release issued here.
He said Nano loans have been shown to disproportionately benefit women entrepreneurs, who often face barriers in accessing traditional financing. He said empowering women economically leads to broader benefits and improved gender equality. Effective regulation and protection measures are crucial to ensure the long-term sustainability and positive impact of nano loans on the economy. Nano loans encourage micro-entrepreneurs to start or expand their businesses, he remarked.
Meher Kashif Younis said access to credit through nano loans boosts people’s spending, leading to increased demand for goods and services, which in turn stimulates economic growth.
He said these loans provide access to credit for individuals who are typically excluded from traditional banking systems. This inclusion helps stimulate economic activity and empowers entrepreneurs and small businesses.
About financial literacy he said this type of loan offers financial literacy programs, helping borrowers learn how to manage their finances effectively. This can lead to improved financial decision-making and responsible borrowing practices, he added.
Regarding poverty alleviation, he said by providing small loans to low-income individuals, nano loans can help alleviate poverty by enabling people to invest in education, healthcare, and income-generating activities.