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Banks Provide Rs23 Billion Loans To Different Companies in Pakistan

Muhammad UsmanMultimedia Journalist

10th May, 2020. 09:56 pm
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Banks Provide Rs23 Billion Loans

In Karachi city, the banks have sanctioned about more than Rs23 billion in the concessional loans in different companies for the payment of wages and salaries of the workers and the employees by preventing the layoffs under the situation of coronavirus lockdown. State Bank of Pakistan (SBP), further processing about Rs 90 billion worth of the applications under the scheme of refinancing that support the employment and their avoid layoffs.


Moreover, the applications have been filed from more than the 1,100 companies under the SBPs Refinance Scheme that support the Employment and also avoids the Layoffs means Rozgar scheme that are in the process at banks that would protect the jobs of around 850,000 employees, ,” the central bank said in a tweet.“Up till 30 April, banks have sanctioned more than Rs23 billion to 209 companies, which will protect jobs of around 220,000 employees,” the SBP added.

However, the refinance scheme has also introduced by the SBP that provides concessional loans at 3% to any company that commits not to lay off to the workers for next three months. COVID-19 has shaken the economy, and SBP relaxes the loan terms for households and businesses

In the month of April, SBP has introduces the refinance scheme which has been used temporary for the businesses that supports the employment level and workers in the face of economic challenges that has posed by the spread of the coronavirus.
The aim was to insensitive businesses to not lay off their workers during the pandemic. However, the scheme is also available for all businesses in the Pakistan through banks and has also covered all the types of employees including payment, daily wages and outsourced workers.

Further, since the lockdown has imposed by the government in the month of March, the SBP has taken various measures that mitigate the impact of COVID-19 on the eceonomy, which include an extension in the repayment of the loan of principal amounts by one year and concessional financing for the businesses that procure the equipment. It has earmarked about atleast Rs 100 billion for measures of emergency.

ADB approves loans worth $1.3 billion for Pakistan

According to the scheme that would giving the finance to the wages and salaries expenses for three months from the month of April to June for the businesses. However, SBP has designed that would give to the smaller businesses.
Such businesses with three month wage and the salary expense is about up to Rs 200 million that are able to avail the full amount of the expense in financing where those with a three-month wage and the salary expense of the greater than Rs500 million would be capable of availing up to 50% of their expenses.
Businesses in the middle category would be able to avail up to 75 per cent of their three months’ salary and wage expense. Moreover, under the scheme one of the grace period of the six months would allow be allowed for borrowers whereas the principal amount repayment would be made in two years.

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