SBP sets up help desk for businessmen

Will expedite processing of applications under refinance scheme

FAISALABAD:

Around Rs2 billion has been disbursed so far against 53 applications from Faisalabad under the refinance scheme of the State Bank of Pakistan (SBP) to discourage layoffs due to the current coronavirus crisis.

A help desk has also been established at the Faisalabad Chamber of Commerce and Industry (FCCI) to expedite the processing of applications in addition to resolving other bank-related problems, said SBP Chief Manager Sarfaraz Ahmad Nadeem.

Speaking at a ceremony, Nadeem expressed satisfaction over close liaison and working relationship between the FCCI and the SBP and pointed out that the business community was already facing financial crisis even before the coronavirus.

“The policy rate stood at 13.25% while the mark-up rate reached 17-19% after including the bank spread,” he said and added that practically it was impossible to do profitable businesses with such a high interest rate.

Nadeem also mentioned other challenges including high inflation, an unstable capital market and continued electricity load-shedding.

“The State Bank immediately responded to the pandemic and announced a workable refinance scheme for the industrial, commercial and services sectors in order to encourage them to keep their employees for three months from April to June instead of retrenching them during the corona-related lockdown.”

Highlighting the salient features of the scheme, Nadeem said the interest rate for tax return filers was only 3% while for non-filers it was 5%.

The central bank chief manager pointed out that the scheme was extended for another three months due to the prolonged lockdown.

He said commercial banks had been assigned the duty to process and disburse loans under the scheme. “Many cases have already been processed while a large number of them are in the pipeline,” he added.

Nadeem said applicants for the refinance scheme may contact the help desk to expedite the processing of their cases, adding that similar help desks would also be set up in Sialkot and Multan for the convenience of applicants belonging to those areas.

The chief manager maintained that most of the problems were related to the commercial banks and he was trying to settle the issues amicably through immediate and efficient regulatory measures.

FCCI President Rana Muhammad Sikandar Azam Khan praised the SBP governor for establishing the first help desk in FCCI. “The central bank governor is taking immediate and prudent policy decisions,” he remarked and added that Reza Baqir also remained in touch with the stakeholders to further fine-tune the refinance scheme.

Khan demanded that banking hours should be further extended in addition to providing potable water and shade for people waiting outside the commercial banks.

Published in The Express Tribune, July 7^th, 2020.

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