Kathmandu Post

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Youth Self-Employment Programme: Tall target, results unsatisfactory

KATHMANDU, DEC 15 -
Although the government targeted to employ 50,000 individuals through the Youth Self-Employment Programme (YSEP) this fiscal year, the progress so far has been disappointing, with just 1,842 employed. The figure, however, might rise to some extent as a few employment records is missing.

With the bulk lending made by the Youth Self-Employment Fund (YSEF) to banks and financial institutions (BFIs) and cooperatives getting into controversy, and political parties agreeing to suspend the lending for the time being, the set target seems difficult to achieve.

With the fund failing to monitor loans provided so far, the real status of the loan uses is unclear. As per the YSEP regulation, BFIs and cooperatives should re-lend the amount to individuals and groups for their self-employment activities.

First of all, lending has been negligible. And, the targeted employment creation has not been realised even the lending made so far. The fund has so far provided bulk loans worth Rs 330 million through 28 BFIs and cooperatives out of its total approval of Rs 1.75 billion. With lent amount, it was expected that a total of 22,827 individuals would be employed.

“The disappointing figure is a matter of investigation,” said YSEF Vice Chairman Punya Prasad Regmi, who faced wrath from CPN (UML)’s youth wing Youth Association Nepal (YAN) for allegedly providing loans to Maoists cadres’ cooperatives. “I think the method of making lending is flawed as it could not attract BFIs and prospective entrepreneurs.”

KIST bank is a pioneer in lending under this programme. It started lending to rickshaw pullers to help them own their own rickshaw. According to KIST CEO Kamal Gyawali, a total of 167 individuals have so far been self-employed through its lending. The figure is far too low compared to the expected generation of 2,500 jobs from Rs 50 million the bank received from the fund, according to KIST. “Lately, more youth are getting attracted towards this scheme,” said Gyawali.

However, YSEF document states that the lending of Rs 50 million through KIST was expected to employ 5,000 youth.

A total of Rs 10 million was provided for agriculture, livestock and sewing professions through Chitwan-based Rising Development Bank. According to YSEF, it created 69 jobs against target of 100.

Although BFIs and cooperatives have not received the entire amount approved by YSEF, there has not been encouraging employment creation even from amount lent so far. “It demands serious rethinking in current approach,” said Regmi, who has now planned to lend through government-owned BFIs. “Talks in this regard with Agriculture Development Bank Nepal has been positive,” said Regmi.

Posted on: 2011-12-16 08:22

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