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SBP announces to provide more relief to businesses to avoid layoffs

SBP announces to provide more relief to businesses to avoid layoffs

KARACHI: The State Bank of Pakistan (SBP) has decided to provide more relief to the various companies for payment of wages and salaries to their workers and employees and to prevent layoffs as a result of the coronavirus lockdown.

Banks have sanctioned more than Rs23 billion in concessional loans to various companies for payment of wages and salaries to their employees, till May 8.

According to the SBP’s announcement, now the owners of the businesses, who have already paid salaries to their workers, can also avail the refinancing facility from the banks.

The State Bank of Pakistan on April 11 launched a refinancing scheme to save hundreds and thousands of jobs in the private sector by providing cheaper loans to businesses at 4 to 5 per cent for payment of wages and salaries.

The SBP said the scheme has been designed to benefit small- and medium- sized enterprises.

“Businesses with a three-month wage and salary expense of up to Rs200 million will be able to avail the full amount of their expense in financing while those with a three-month wage and salary expenses of greater than Rs500m will be able to avail up to 50pc of expense,” said the State Bank of Pakistan.