Karachi: The State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA) have launched a comprehensive package to help households, businesses, and other stakeholders deal with the country’s ongoing COVID-19-induced economic crunch, according to news sources.
This
relief package is expected to assist microfinance, corporate, commercial,
retail, agriculture and small and medium enterprises (SMEs) with effectively
managing their finances in the wake of the pandemic.
According to SBP, the loan-able funds have been increased in the overall banking sector. Additionally, the SBP has reduced the Capital Conservation Buffer (CCB) from 2.50% to 1.5% in a bid to help the banks in the provision of additional loans to the business community. This step will enable the banks to lend PKR 800 billion in additional loans to help them in the wake of COVID-19 pandemic.
Moreover,
the regulatory limit on credit extension for SMEs has been permanently
increased from PKR 125 million per SME to PKR 180 million, effective
immediately.
The
SBO has also relaxed the Debt Burden Ratio (CBR) for consumer loans from 50% to
60%, which will allow 2.3 million individuals to borrow more from the banks.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
