State Bank of Pakistan (SBP) has allowed the disbursement of wages/salaries for the month of July before Eid-ul-Azha under its Rozgar Scheme.
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, businesses may avail financing to pay wages and salaries for the month of July or get reimbursement after paying wages.
Further, SBP has also provided flexibility to the businesses by allowing them to avail financing from more than one bank. Businesses are 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 laying off employees and prevent unemployment. Initially, it was available for three months, April-June 2020, but was subsequently extended for another three months till the end of 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