ECC extends SBP’s refinance scheme with additional benefits

ECC extends SBP’s refinance scheme with additional benefits

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved extension to the refinancing scheme of the State Bank of Pakistan (SBP) up to September 30, 2020 from June 30, 2020.

A statement said that the ECC approved the “Risk Sharing Facility for SBP Refinance Scheme to support employment and prevent layoff of workers.

The scheme supports provision of credit at concessional rate to businesses that commit not to lay off workers till September 2020 (earlier the cutoff date was June 30, 2020), the loss coverage for SME sector has been increased to 60 percent from the existing 40 percent to promote greater take up at the smaller level of business.

Under the new changes the borrowers having turnover up to Rs800 million can avail benefit of the scheme; earlier, for the eligibility of the scheme, the turnover limit was up to Rs 2 billion).

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the ECC meeting at the Cabinet Division.

ECC approved the following technical supplementary grants:

1) Rs.3.2 billion for PIACL (Pakistan International Airline corporation Limited) to discharge the obligations on account of markup against GoP guaranteed loans.

2) Rs25,206,953 in favor of Pakistan Academy for Rural Development (PARD) Peshawar for the current financial year.

3) Rs. 1300 million to Pakistan Atomic Energy Commission to discharge its various liabilities

4) Rs 235 million to Deputy Commissioner Islamabad for making payment of internal security duty allowance to troops of Pakistan Rangers (Punjab) deployed in Islamabad

5) Rs 500 million to the Ministry of Information and Broadcasting to meet the expenditure of media campaign on Covid-19

6) Rs 100 million for National Disaster Management Authority (NDMF) for procuring equipment for locust control in Punjab

7) Rs 7.947 billion to NDMA on account of procurement of emergency equipment through Pakistan Foreign Mission in China (Ex-post Facto approval on account of Pakistan National Emergency Preparedness and Response for Covid-19, procurement of equipment and transfer of funds)

8) Rs.4.5 billion for the capacity building of Civil Armed forces as requested by the Ministry of Interior

9) Rs.80 million for Competition Commission of Pakistan for different expenses

10) Rs 100 million for the purchase of kerosene oil by Head Quarters Frontier Corps KP (North) to be used in different locations posts (8000 feet and above)

11) Rs.8.093 million for the Privatization Division for employee related expenditure

12) Two TSGs amounting to Rs 1192.325 million and Rs 358.506 million for Ministry of Federal Education and Professional Training for the Award of Scholarships to Afghan students ECC also granted approval for book value adjustment of overdue amount of loans amounting to Rs 30.807 billion to Earth Quake Reconstruction and Rehabilitation Authority over and above its allocated development and non-development budget.

It also allowed, on the recommendation of the committee earlier constituted by ECC, to convert two relent Chinese loans in to Government loans keeping in view the subsuming of ERRA into NDMA and ERRA being non-profit/ non revenue generating entity. ECC also approved the “handing over of Pakistan Machine Tool Factory to Strategic Plans Division.

For the purpose of operationalization of PMTF, Rs 500 million shall be provided to SPD as a loan.

The Federal Government shall pay all the liabilities accrued till the transfer of management control of PMTF to SPD, after partial settlement of liabilities of Rs 1.78 billion.