FPCCI demands SBP to extend refinance scheme to support employment

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

In a statement, Mian Nasser Hyatt Maggo, President FPCCI appreciated the initiative of SBP; introducing Schemes like salary payments, deferred loans, the introduction of Temporary Economic Refinance Facility to resolve the cash flow problems of businessmen and industrialists.

He added that these schemes helped many industrial and service-oriented sectors to retain employees during the coronavirus pandemic period. Under this scheme, SBP has released Rs. 238 billion to the private sector.

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While commenting on the Refinance Scheme for Payment of Wages and Salaries, he added that the aim of this scheme is to prevent layoff by financing wages and salaries of employees for all kinds of businesses except for Government entities, public sector enterprises, autonomous bodies, and deposit taking financial institutions.

Since the companies that availed this credit facility through banks have not been recovered from devastating economic impact of covid-19, it would be advisable if SBP extend this Scheme for more than one year.