Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular Letter No. 10 of 2020
May 11, 2020

The Presidents/CEOs,
All Banks/DFIs

Dear Sirs/Madams,

1. Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns
2. Islamic Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns

         Please refer to IH&SMEFD Circular Nos. 06 and 07 of 2020 and IH&SMEFD Circular Letter No. 7 of 2020 on the captioned Schemes.

2.     With a view to avoid layoffs in non-deposit taking financial institutions, it has been decided to broaden scope of the facility and include non-deposit taking financial institutions as eligible borrowers under the captioned Schemes.

3.      Further, while a risk sharing facility for collateral deficient SMEs and small corporates has already been made available with the budgetary support of the GoP, with an aim to further enhance the liquidity support for business concerns, State Bank has decided to increase financing limits for the businesses under these Schemes. Existing three categories have been merged into two categories with higher wage bill coverage and higher maximum limits. Accordingly, maximum financing limit of a borrower/customer under these Schemes will now be determined in the following manner:

Category Wages and Salaries Bill for 3 months Loan Limit Maximum Loan Limit
(1) (2) (3) (4)
A  Less than or equal to Rs. 500 million  100% of column 2  Rs. 500 million
B  More than Rs. 500 million  Rs. 500 million or 75% of column 2, whichever is higher  Rs. 1,000 million

4.    The above changes are applicable with immediate effect. However, businesses that had earlier availed lower financing due to applicable limits can now avail additional financing on the basis of revised criteria. All other terms and conditions of the Schemes shall remain unchanged.


Yours Sincerely,


(Dr. Mian Farooq Haq)


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