Industrial community welcomes refinance scheme

The Industrial community has welcomed "Refinance Scheme" to protect industrial workers from unemployment.

North Karachi Association of Trade & Industry (NKATI) has lauded "Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns" and have expressed their thanks to Prime Minister Imran Khan, Finance Advisor Hafeez Shaikh and Governor State Bank Reza Baqir on fulfilling NKATI demand.

Capt. A Moiz Khan, patron in chief NKATI, president Nasim Akhtar, in a statement said that to make this scheme more effective, 4 percent markup should also be abolished and interest-free loans provided so that those industrialists across the country can also benefit from it who do not want to work on mark-up.

"Few days ago, we had demanded of the government to provide loans on easy terms like Bangladesh, in view of the problems of the industrialist community, because if it were not done then it is extremely difficult to resume production activities, while millions of workers will likely have to quit their jobs," NKATI leader added.

They further said "Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns" is a timely step to protect employers and industrial workers.

They said that saving the economy should be the top priority of the state. As the business wheel turns, the country will grow and prosper and create more employment opportunities. The State Bank's initiative will restore the trust of the industrialist community and boost industries.

President Site Association of Industry (SAI), Suleman Chawla commenting on the scheme introduced by SBP on 10th April, 2020 to avoid layoff of workers, said that his association suggests the following:

1) Credit Guarantee: In these uncertain times, banks will not entertain fresh disbursement requests especially from SMEs who do not have additional collateral to offer to secure the loan.

The way out of this predicament is to push SBP to offer 100 percent credit guarantee against this scheme otherwise disbursement will be dismally low.

2) Wage support by Government: All over the world, cost has been borne by governments by reimbursing up to 80 percent payroll cost. We urge government to burden at least 66.66 percent of the labour cost in the shape of repayment of this loan. As loan disbursements will be verified by banks, level of compliance will be high ensuring that funds have reached the intended audience.

He added that although it is mentioned in the draft ordinance that the government may provide exemption in the provincial taxes, duties, fees, cess, levies, and charges in a manner as notified by the government but the Relief Ordinance must guarantee that the Sindh Revenue Board (SRB) will be barred from collecting all types of taxes for a period of at least six months.

He further suggested that the funds being collected by the Workers Welfare Fund and Sindh Employees Social Security Institution (SESSI) can be utilized through Town Associations to support industrial workers.