Keeping in view the slow industrial activities and rising unemployment among youth, there is a need to highlight the importance of the micro-finance banking in the country.The micro-finance banks have grown their reach in the country but there is also need to grow their capacities and capitalisation to act as partners in business ventures rather than playing the role as lenders. In the current situation, banks lend money against guarantees and sureties, without taking risks on their part. The banks also need to accept challenges to take risks which will enable young beneficiaries of loans to work in close coordination with them and take expert advice at every level. The capacity building programmes are also important both for the bank officials and the borrowers, to make comprehensive plans, launch ventures and minimize the risks of failures. In the prevailing situation, banks lend loans and put all the risks and liabilities on shoulders of the lenders which ultimately result in poor recoveries and losses. Until the banking rules are changed and keep their involvement in ventures, the efforts to avoid risks will simply not work. But these kinds of arrangements are only possible at small or medium level business entities where the entrepreneurs face not only financial constraints but also lack of expertise.
The best way for the micro-finance banks to lend money is to encourage startups. The young graduates do not own property and the required capital. They look for micro-finance banks for help, but a few of them are lucky to get their loans improved. A few from the young breed will be able to submit property papers to obtain loan of a few hundred thousand.Newspaper reports suggest that at least 1.7 million young people reach the working age each year, but fewer of them are lucky to start their own businesses. At least four million young people are unemployed and this number will rise to 8.6 million in three years. The provision of business and employment opportunities is necessary to avoid the risk of social exclusion.The country may face a serious challenge of social inequalities and crime if the young generation is not engaged in work. The provincial governments are also needed to start youth support programmes to give them training and small loans to enable them start their own businesses.
