LAHORE– The Pakistan Industrial and Traders Associations Front on Monday appreciated the State Bank of Pakistan for its favorable decision to allow deferment of loans for one year, which is a right move to support the small industry in Pakistan.
PIAF Chairman Mian Nauman Kabir, in a joint statement with Senior Vice Chairman Nasir Hameed and Vice Chairman Javed Iqbal, said that it is welcomed step that the SBP has announced to extend the scope of financial relief package to borrowers availing loans under Refinance Schemes. Now, the borrowers of SBP’s refinance schemes will be allowed for deferment in repayment of principal amount for one year.
Piaf chairman said that it is pleasant for the businessmen that the State Bank has continuously been reviewing the challenges arising out of COVID-19 pandemic situation with particular reference to the financial sector and taking measures, announcing a complete financial relief package for borrowers of corporate, consumer, agriculture, SMEs and microfinance sectors.
Mian Nauman Kabir said that now, expanding the scope of its recently announced relief package for households and businesses, SBP has taken another major step, which will impact a long way for the growth of economy.
State Bank has allowed similar relaxations, as provided under the relief package, on its concessional refinance schemes. Under various refinance schemes loans are provided with preferential terms and conditions to promote growth in priority sectors of the economy.
Quoting the SBP, PIAF senior vice chairman Nasir Hameed said that now the relaxation allowed for deferment in repayment of principal amount for one year for corporate, consumer, agriculture, SMEs and microfinance sectors, will now be available on financing of banks/ DFIs under SBP’s refinance schemes as well. With this deferment of principal, the complete repayment schedule/tenor of the loan will be extended by one year.
Nasir Hameed said that the borrowers will continue servicing their mark up during the period of principal deferment. In case borrowers are not able to service mark-up payment, banks/DFIs may reschedule/restructure the loan in such a manner that tenor of the loan can go up to one year beyond the existing maximum tenor of the respective scheme.
Borrowers of SBP’s several refinance schemes and their Shariah alternatives would benefit from this relaxation.
PIAF vice chairman Javed Iqbal said that borrowers of Long Term Financing Facility (LTFF), Financing Facility for Storage of Agricultural Produce (FFSAP), Refinance Facility for Modernization of SMEs, Refinance and Credit Guarantee Scheme for Women Entrepreneurs, Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises and Small Enterprise (SE) Financing and Credit Guarantee Scheme for Special Persons can be availed this facility.— PRESS RELEASE
