The Federal Cabinet’s Economic Coordination Committee (ECC) examined the summary presented by the Ministry of Industry and Production and approved an assistance package of Rs 75 billion for small and medium enterprises (SMEs) and the unemployed nationwide.
As part of the package approved by Chota Karobar Imdadi, the federal government will pay bills to small businesses in May, June and July.
Subsequently, the Federal Minister of Industry and Production, Hammad Azhar, reported to the media at a press conference in the federal capital about the package for workers who were fired during the coronavirus blockade.
He said 75 billion rupees have been allocated to the package. “The government wants to help small businesses hit by the blockade, so it’s introducing this program to make them easier”.
The minister noted that over 3.5 million small businesses would benefit from this package. This package will benefit any store or company with a commercial 5 kW connection or an industrial connection up to 70 KW.
As part of RS, the 50.69 billion package entitled ‘ChotaKarobar or SannatImadadi Package’ prepared by the Ministry of Industry and Production in active consultation with the Office for Small and Medium- Enterprise Development (SMEDA) 95% of commercial consumers with a connected load of up to 5 kW and 72% of consumers industrial with a connected load up to 70 kW will receive financial support.
Azhar said the program will apply to registered and unregistered commercial and industrial meters. He called it a political tool to reach as many sectors as possible. He said that the sector’s policy would be in the next phase.
According to a statement later released by the Ministry of Finance, ECOC approved a R $ 50.69 billion package for the federal government to provide indirect cash flows to small and medium-sized companies that use prepaid electricity.
Under this program, commercial consumers would receive support up to 100,000 Rs, and industrial consumers up to 450,000 Rs for three months. The base period for estimating electricity consumption will last from May to July 2019, and the corresponding average will be used for meters for which data on electricity consumption for the entire base period are not available.
This is the third Relief package introduced by the current government after the closure of businesses and across the country after the coronavirus epidemic to support affected sectors and society.
Earlier on March 30, the government announced a general economic aid package of Rp 1.2 trillion to mitigate the negative impact of a coronavirus pandemic on various sectors / social classes.
On April 4, Prime Minister Imran Khan also announced an incentive package for the construction industry to improve job opportunities in the country after the Corona virus epidemic. As part of the incentive program, it has been announced that those who invest in this sector will not be asked for the source of income.
Meanwhile, ECC also approved on Monday a loss of Rs 30 billion for the refinancing program of the State Bank of Pakistan (SBP) to support the work and prevent layoffs.
The program extends financing to companies with a maximum turnover of Rs 2 billion, while the government requests 40% of the first loss in the portfolio distributed (essentially only) to eligible borrowers in the event of repayments classified as “losses ” with classification criteria according to the applicable SBP monitoring rules. Banks and FDI that have been assigned limits under the SBP program would be eligible executive agencies.
The ECC also approved the allocation of Rs 2.5 billion to Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan, which are subject to a special agreement. It also instructed the Ministry of Industry and Production to introduce similar support measures for the agricultural sector, including agricultural pipeline wells, as well as for transport companies and the microfinance sector.