SBP initiatives to help prevent unemployment: Prime Minister Imran Khan

ISLAMABAD – Prime Minister Imran Khan said on Saturday that the government was taking various political initiatives, including incentives for businesses, the Ehsaas Emergency Cash program and jobs for daily workers as part of the Ten Billion Tree program to balance the impact of coronavirus in the country.

In a series of tweets, the Prime Minister said that government policy aims to strike a balance between protecting people through targeted foreclosure and protecting the vulnerable and the needy.

“Ehsaas’ emergency money program is underway. Today, the State Bank of Pakistan (SBP) announced incentives for businesses. We are looking to offer business incentives, ”said the Prime Minister.

Imran Khan said the Ehsaas emergency cash flow program is underway and that the SBP is offering business incentives with tax refunds and opening up the construction sector while keeping the agricultural sector open. The Prime Minister said that SBP’s business initiatives during COVID19 will help keep businesses afloat and prevent massive unemployment.

“With tax refunds and the opening of the construction sector while keeping the agricultural sector open. SBP’s initiatives for businesses during COVID19 will help keep businesses afloat and prevent massive unemployment, ”he added.

In addition to this, the Prime Minister said that the government was also using a number of daily bets in the ten billion tree campaign to have a positive impact on life and the planet simultaneously. “Every initiative counts at the time of COVID19,” he said.

Friday, SBP announced the refinancing plan for the payment of wages and salaries to workers and employees of companies to support the employment of workers facing the economic challenges posed by the spread of COVID-19.

According to the SBP press release issued in Karachi, the main objective of this temporary refinancing plan is to encourage companies not to fire their workers during the COVID-19 pandemic. He said the program will be accessible to all businesses in Pakistan through banks and will cover all types of employees, including permanent and contractual daily wages as well as outsourced workers.

The plan will provide funding for wages and salaries for three months, from April to June 2020, to companies that will not fire their employees during those three months. “The increase in loans granted under this scheme will be 5% maximum. Borrowers who are on the list of active taxpayers can obtain loans at a further reduced rate of 4pc. The program was designed to focus on small businesses, ”says the SBP press release.

He further stated that companies with three month salary and salary expenses of up to Rs 200 million will be able to benefit from all of their financing expenses, while those with three month salary and salary expenses will exceed 500 million rupees will be able to benefit up to 50pc from their expenses. Companies in the intermediate category can benefit from up to 75% of their salary and salary costs for three months.

According to the press release, banks will not charge loan processing fees, credit limit fees or prepayment penalties for loans made under this program. A six-month grace period will be granted to borrowers while principal repayment will be made in two years. The banks will send the SBP a weekly report on the adoption of the program and in particular the reasons for any refusal to request financing under this program.

Later, speaking to a private TV station, the governor of the SBP, Dr. Reza Baqir, in the evening, said that the reduction in the interest rate by 225 basis points is the second major reduction in the world. . SBP governor hoped that these actions would reduce the level of recession, arguing that the government’s priority was to revive the development process and show stability in the labor market, the governor said current inflation statistics suggest that prices will drop in the coming days.

Claiming the fall in prices in recent months, he said the central bank decides to cut interest rates based on the level of inflation. He said the capital is leaving all emerging markets.