SBP urged to extend refinance scheme for salary payments

SBP urged to extend refinance scheme for salary payments

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the central bank to extend the refinance scheme which was introduced for businesses in order to reduce the adverse impact of coronavirus pandemic.

The FPCCI said that the State Bank of Pakistan (SBP) should extend the refinance scheme by one year for payment of wages and salaries, launched to support employees and prevent layoffs due to the COVID-19 outbreak in Pakistan.

FPCCI President Mian Nasser Hyatt Maggo appreciated the initiative of SBP; introducing schemes like salary payments, deferred loans, introduction of temporary economic refinance facilities etc. to resolve the cash flow problems of businessmen and industrialists.

He added that these schemes helped many industrial and service oriented sectors to retain employees during the Corona pandemic period. Under this scheme, SBP has released Rs. 238 billion to the private sector.

While commenting on the refinance scheme for payment of wages and salaries, the FPCCI chief said that the aim of this scheme is to prevent layoff by financing wages and salaries of employees (permanent, contractual, daily wagers as well as outsourced) for all kind of businesses except for the government entities, public sector enterprises, autonomous bodies and deposit taking financial institutions.

Since the companies that availed this credit facility through banks have not been recovered from the devastating economic impact of COVID-19, it would be advisable if SBP extend this scheme for more one year.

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