Islamabad: The Economic Coordination Committee (ECC) is expected to approve the relief package 1 for Small & Medium Enterprises (SMEs) today (Monday), a news source reported. The package will provide relief to small businesses in order to overcome the country’s financial challenges accrued in the wake of the ongoing coronavirus lockdown.
In this regard, Federal Industries & Production Minister Hammad Azhar gave a statement on Twitter on Sunday. He said that his ministry would table the phase one of the ‘Small Business Support Package’ (Chota Karobar Imdad Package) to the ECC on Monday.
In his statement, the minister added that they were working on a collateral-free financing scheme for SMEs in phase two of this package. He highlighted that the second phase of the Small Business Support Package would target sectors most affected by COVID-19 for providing financial relief.
The proposed package has come in response to a survey conducted by the Small & Medium Enterprises Development Authority (SMEDA). This survey revealed that 95% of small businesses were facing reduction in production, contracts, and work activity amid the coronavirus lockdown.
Areas identified for providing financial relief to SMEs during this tough time include several support measures. These measures include tax relief, financial packages, grants and guarantees, support for salary payments, easing loan repayment conditions, and relaxation for utility bill payments.
