SBP facilitates businesses to disburse salaries before Eid-ul-Azha

KARACHI: State Bank of Pakistan (SBP) has allowed the disbursement of salaries for the month of July to be made before Eid-ul-Azha under its Rozgar Scheme, ARY NEWS reported.

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.

#SBP allows disbursement of salaries for July to be made before #EidulAzha under its Rozgar Scheme & provides flexibility to businesses by allowing them to avail financing from more than one bank. Details: https://t.co/Al3nbFTDO6

— SBP (@StateBank_Pak) July 24, 2020

However, with Eid-ul-Azha to be observed on August 01, the SBP has now allowed that the businesses may avail financing to pay wages and salaries for the month of July or get reimbursement after paying wages.

Further, the SBP has also provided flexibility to the businesses by allowing them to 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 lay off of employees and prevent unemployment.

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

Under the Scheme, up till 17th July 2020, financing of Rs 128.6 billion has been approved by banks for 2,141 businesses covering wages and salaries of over 1.25 million employees.