State Bank facilitates businesses

KARACHI: The State Bank of Pakistan (SBP) has allowed disbursement of wages / salaries for the month of July to be made before Eid-ul-Azha under its Rozgar Scheme, a statement said on Friday.

“Earlier the banks were required to disburse salaries according to the cycle of salaries used by businesses, which is typically after the completion of the month. Now the businesses may avail financing to pay wages and salaries for the month of July or get reimbursement after paying wages,” it said.

Further, the central bank has also provided flexibility to the businesses by allowing them avail financing from more than one bank.

Businesses were facing difficulty in availing financing from one bank due to their credit limits or other reasons. However, businesses cannot avail financing for a specific month from more than one bank.

The Rozgar Scheme that provides concessional financing to businesses was introduced in April 2020 to avoid employees’ layoffs and prevent unemployment.

Initially, it was available for three months, April to June 2020, but was subsequently extended for another three months till the end of September.

Under the scheme, till July 17, 2020, financing of Rs128.6 billion has been approved by the banks for 2,141 businesses, covering wages and salaries of over 1.25 million employees.