FPCCI seeks extension in SBP’s refinance scheme to support employment

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the State Bank of Pakistan (SBP) to extend is Refinance Scheme for Payment of Wages and Salaries, which was launched to support employees and prevent layoffs due to the Covid-19 outbreak in Pakistan, by a year. 

Lauding the SBP’s initiatives such as facilitation in salary payments, deferred loans and introduction of Temporary Economic Refinance Facility (TERF), FPCCI President Mian Nasser Hyatt Maggo said in a statement that these schemes not only helped many industrial and service-oriented sectors to retain employees during Covid-19 pandemic, but also resolved cash flow problems faced by businessmen and industrialists.

Under this scheme, SBP has released Rs238 billion to the private sector, he noted, adding that the aim of this scheme was to prevent layoffs by financing the wages and salaries of employees (permanent, contractual, daily wagers as well as outsourced).

This service was available for all kinds of businesses except government entities, public sector enterprises, autonomous bodies and deposit taking financial institutions. 

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“Since the companies that availed this credit facility through banks have still not recovered from devastating economic impact of Covid-19, it would be advisable if SBP extend this scheme by one more year,” the statement read.

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