The Pakistan Industrial and Traders Association Front has raised its concern over announcement of various financial packages by the government for industry to deal with the challenges posed by coronavirus, but no financial relief is seen anywhere on the ground from any government institutions or department including SBP, FBR, LESCO, SNGPL Punjab Social Security Dept and EOBI.
PIAF chairman Mian Nauman Kabir, in a joint statement with senior vice chairman Nasir Hameed Khan and vice chairman Javed Iqbal, hailed the approval of another relief package of billions of rupees by the Economic Coordination Committee of the Cabinet for the SMEs, urging the authorities to also ensure provision of this facility on urgent basis to the small businesses, which are facing severe financial crisis due to prolonged lockdown.
Nauman Kabir said that on April 22, the State Bank of Pakistan had announced incentive package to help businesses avoid layoffs while directing banks to provide refinancing at zero percent.
The central bank had announced relaxations in collateral requirements, further reduction in end-user rate, reimbursement of wages, special accounts for employees to receive wages, borrowing from banks other than maintaining payrolls, simplification of application form for small and medium enterprises and bank’s exposure limits.
He added that earlier on April 10, the central bank had also announced an incentive scheme entitled Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns, enabling provision of concessional credit for payroll finance to businesses that commit to not lay off workers for the next three months.
But the reality is that banks have refused to offer such loans, except extending only Term Finance Funding, with a restriction of on-time payment of markup and other conditions. The banks officials say that they have no instructions from the govt in this regard which is very unfortunate.
PIAF senior vice chairman Nasir Hameed Khan said that social security and EOBI payments are being demanded by the departments as usual, as the government promise of workers salary funding via Social Security channel has not been implemented yet.
He said that utility companies including SNGPL and LESCO have neither provided any relief in tariff nor extending dates of bills payment, contrary to the commitment of the government.
Nasir Hameed said that same is the case with the payment of Income tax and Sales tax refunds announced by the government.
