FPCCI chief for extending ‘Refinance Scheme’ for payment of wages, salaries

KARACHI: President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Nasser Hyatt Maggo has urged the State Bank of Pakistan (SBP) to extend the Refinance Scheme for Payment of Wages and Salaries, launched to support employees and prevent layoffs due to the Covid-19 outbreak in Pakistan for one year.

He appreciated the initiative of SBP; introducing Schemes like salary payments, deferred loans, introduction of Temporary Economic Refinance Facility 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 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, he added 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 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 devastating economic impact of covid-19, it would be advisable if SBP extend this Scheme for more one year.

Copyright Business Recorder, 2021