Refinance Scheme For Payment Of Wages/ Salaries to Workers/Employees of Businesses
To limit the adverse impact of the COVID-19 on businesses and employment in terms of payments of wages/salaries to workers/employees, the State Bank of Pakistan has introduced a temporary refinance scheme via conventional and Islamic channels. Through this scheme private organizations can borrow upto Rs. 500 million and pay the wages/salaries of their employees with easy repayment in 8 equal quarterly installments (starting from January 2021).
KEY HIGHLIGHTS OF RELIEF SCHEME FOR BUSIENSSES’ PAYMENT TO WORKERS/EMPLOYEESÂ
This scheme aims to finance wages and salaries for permanent, contractual, daily wagers as well as outsourced employeesÂ
- Scheme is for both existing as well as new customers
- Time limit for submission of such request starts from April 2020 and ends on June 30, 2020
| Category | Wage Bill for 3 months | Loan limit | Maximum Financing Limit |
| A | Less than or equal to 200 M | 100% of 3 months wages | Rs. 200 M |
| B | More than 200 M and less than 500 M | 75% of 3 months bill orÂ
Rs. 200 M whichever is higher |
Rs. 375 MÂ |
| C | More than 500 MÂ | 50% of 3 months bill of Rs. 375 M whichever is higher | Rs. 500 MÂ |
- Tenor of financing – Repayment shall start from January 2021, and be made in 8 equal quarterly installments i.e. up to December 2022
- Mark-up Rate – End User 5 % per annum
- Rebate – Rebate of 1% p.a. will be allowed to those borrowers that are on active tax payers listÂ
- Validity – June 30, 2020
- Customer availing this facility will undertake not to lay off their workers/employees during first three months i.e. April 2020 to June 2020.