AIRLINK 75.30 Increased By ▲ 0.05 (0.07%)
BOP 5.08 Decreased By ▼ -0.03 (-0.59%)
CNERGY 4.52 Decreased By ▼ -0.08 (-1.74%)
DFML 34.70 Increased By ▲ 2.17 (6.67%)
DGKC 90.65 Increased By ▲ 0.30 (0.33%)
FCCL 22.95 Decreased By ▼ -0.03 (-0.13%)
FFBL 33.24 Decreased By ▼ -0.33 (-0.98%)
FFL 9.94 Decreased By ▼ -0.10 (-1%)
GGL 11.23 Increased By ▲ 0.18 (1.63%)
HBL 114.99 Increased By ▲ 0.09 (0.08%)
HUBC 136.45 Decreased By ▼ -0.89 (-0.65%)
HUMNL 10.17 Increased By ▲ 0.64 (6.72%)
KEL 4.63 Decreased By ▼ -0.03 (-0.64%)
KOSM 4.73 Increased By ▲ 0.03 (0.64%)
MLCF 40.50 Decreased By ▼ -0.04 (-0.1%)
OGDC 140.77 Increased By ▲ 1.02 (0.73%)
PAEL 27.66 Increased By ▲ 0.01 (0.04%)
PIAA 25.10 Increased By ▲ 0.70 (2.87%)
PIBTL 6.85 Decreased By ▼ -0.07 (-1.01%)
PPL 124.20 Decreased By ▼ -1.10 (-0.88%)
PRL 27.41 Decreased By ▼ -0.14 (-0.51%)
PTC 14.12 Decreased By ▼ -0.03 (-0.21%)
SEARL 62.26 Increased By ▲ 0.41 (0.66%)
SNGP 72.36 Decreased By ▼ -0.62 (-0.85%)
SSGC 10.50 Decreased By ▼ -0.09 (-0.85%)
TELE 8.78 No Change ▼ 0.00 (0%)
TPLP 11.53 Decreased By ▼ -0.20 (-1.71%)
TRG 66.54 Decreased By ▼ -0.06 (-0.09%)
UNITY 25.75 Increased By ▲ 0.60 (2.39%)
WTL 1.40 Decreased By ▼ -0.04 (-2.78%)
BR100 7,826 Increased By 23.4 (0.3%)
BR30 25,791 Decreased By -24.3 (-0.09%)
KSE100 74,692 Increased By 160.3 (0.22%)
KSE30 24,040 Increased By 85.2 (0.36%)
Print Print 2020-04-08

Covid-19-hit businesses: SBP urged to give one-time interest free loans

Economic & Financial Analyst, Ateeq Ur Rehman has said that most of the industries, businesses and SMEs are witnessing a major downturn¸ current lockdown has created a situation where majority of them are defaulting or close to bankruptcy.
Published 08 Apr, 2020 12:00am

Economic & Financial Analyst, Ateeq Ur Rehman has said that most of the industries, businesses and SMEs are witnessing a major downturn¸ current lockdown has created a situation where majority of them are defaulting or close to bankruptcy.
He said that SBP should provide one time interest free loans to manufacturing industry, business community and SMEs in particular for minimum a period of 6 month to help create liquidity. Further amid growing concerns about the potential Economic Impact of the Covid-19, the SBP's Relief Package especially for SMEs is an excellent move to manage their finances but with such huge interest rate it is practically not possible.
Ateeq said that under this lockdown scenario the employer's perspective is extremely difficult. Consequently, it may become difficult for enterprises, retailers, wholesalers, shopkeepers, vendors, SMEs, etc to continue paying wages , salaries and liabilities to their employees in the coming months.
Employers should be allowed to liquidate leave balances and bonuses and distribute Workers Profit Participation Fund for the current financial year, Workers Welfare Fund, Social Security and EOBI contributions, which may help them mitigating the suffering of their workers and their business in these difficult times. He suggested in these dilapidated conditions of financial supply chain, the government should end wasteful expenditures, improve social services for all citizens, concentrate on human skills, tap resources and reduce inequalities.

Copyright Business Recorder, 2020

Comments

Comments are closed.