SBP to finance 100pc of payroll up to Rs500m.

KARACHI -- The State Bank of Pakistan (SBP) under the banner of Rozgar Scheme will now finance up to 100 per cent of payroll of businesses with an average 3-month wage bill of up to Rs500 million from Rs200m, said a central bank circular issued on Monday.

This can be used for the onward payment of wages and salaries for the months of April, May and June.

The circular also disclosed that up to May 8 banks have so far approved Rs47 billion loan applications to help save 450,000 jobs and they have received requests from over 1,440 businesses for financing of over Rs103bn to support around 1m employees.

Giving details of financing under the scheme, the SBP said that earlier 100pc financing was available for up to a wage bill of Rs200m only. Similarly, for businesses with a 3-month wage bill exceeding Rs500m, the central bank will now finance up to 75pc with maximum financing of Rs1 billion.

Earlier, 75pc financing was available up to a maximum of Rs375m and 50pc up to Rs500m.

'The above changes are applicable with immediate effect,' said the SBP, adding the businesses that had earlier availed lower funds due to applicable limits...