Karachi: The State Bank of Pakistan (SBP) on Monday announced that it will finance up to 100% of businesses’ payroll with an average 3-month wage bill of up to PKR 500 million (up from the previous PKR 200 million limit) — with the initiative falling under the auspices of the Rozgar Scheme, according to news sources.
As per the official circular, this relief loan can be used for payment of wages and salaries during the months of April, May and June.
The SBP circular further revealed that the central bank had approved loan applications worth PKR 47 billion; which, in turn, had allowed 450,000 jobs to be saved. It stated that the bank had received requests from more than 1,440 businesses asking for financing worth PKR 103 billion in order to support over 1 million employees.
Previously, 100% financing had only been available for companies with a wage bill of up to PKR 200 million. However, now the SBP will provide complete financing to businesses with a 3-month wage bill of PKR 500 million, and up to 75% financing to firms with a wage bill exceeding that limit — with maximum support of up to PKR 1 billion.
These changes are applicable with immediate effect and businesses can avail the additional financing with this revision in criteria. This increase in the financing limit — combined with the government’s risk-sharing facility for collateral deficient small corporations, and small and medium enterprises (SMEs) — is expected to facilitate a full array of businesses, and prevent large-scale layoffs.
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