Karachi: State Bank of Pakistan (SBP) has further enhanced the financing limits and scope of its largely appreciated relief scheme which is protecting layoffs in the private sector.
The National Bank will now provide up to 100% of funds for corporate salaries and salaries, with an average three-month salary bill of up to 500 million rupees. This can be used for salary payments in April 2020, May and June 2020. Earlier, 100% financing was available and the maximum payroll was only 200 million rupees.
Similarly, for companies whose wages exceed Rs in 3 months. With 500 million US dollars, the National Bank will now finance up to 75% with the highest rupee funds. 1 billion. Earlier, 75% of financing was available, with a maximum amount of Rs. Rs 375 crore and 50%, the highest rupee. 500 million.
The above changes will take effect immediately. However, companies that received lower financing earlier due to applicable restrictions can now receive additional financing according to the revised standard.
The increase in financing limits and the government’s risk-sharing mechanism for small and medium-sized enterprises and small businesses with insufficient collateral will benefit the entire enterprise from SBP’s Rozgar plan, thereby preventing large-scale layoffs.
The National Bank has also extended the scope of its refinancing program to non-deposit financial institutions. They can now use the funds to pay employees ’salaries under the plan.
Since the launch of the plan until May 8, 2020, the bank has received requests from more than 1,440 companies for an amount exceeding Rs. US $ 103 billion was used to provide wages and salaries to the 1 million employees supported by the program.
In this payment, the bank has approved the rupee financing. Provided $ 47 billion in funding to 500 companies and covered more than 450,000 employees.
Since the launch of the “Refinancing Program to Support Employment and Prevent Workers from Laying Down” (often called the Rozgar Program), the National Bank has been receiving feedback from various stakeholders to make the program more conducive to business development Incentive measures to prevent the current COVID pandemic in the following situations.
Many changes have been made to the plan to ensure that the benefits of the plan should benefit small and medium-sized enterprises that provide employment for a large number of people.
In this regard, the government ’s risk-sharing mechanism has recently been announced, and corporate guarantees are allowed as collateral, which is expected to incentivize banks to provide loans to SMEs with insufficient collateral.