Covid-19-hit businesses: SBP urged to give one-time interest free loans

Economic & Financial Analyst, Ateeq Ur Rehman has said that most of the industries, businesses and SMEs are witnessing a major downturn¸ current lockdown has created a situation where majority of them are defaulting or close to bankruptcy.
He said that SBP should provide one time interest free loans to manufacturing industry, business community and SMEs in particular for minimum a period of 6 month to help create liquidity. Further amid growing concerns about the potential Economic Impact of the Covid-19, the SBP's Relief Package especially for SMEs is an excellent move to manage their finances but with such huge interest rate it is practically not possible.
Ateeq said that under this lockdown scenario the employer's perspective is extremely difficult. Consequently, it may become difficult for enterprises, retailers, wholesalers, shopkeepers, vendors, SMEs, etc to continue paying wages , salaries and liabilities to their employees in the coming months.
Employers should be allowed to liquidate leave balances and bonuses and distribute Workers Profit Participation Fund for the current financial year, Workers Welfare Fund, Social Security and EOBI contributions, which may help them mitigating the suffering of their workers and their business in these difficult times. He suggested in these dilapidated conditions of financial supply chain, the government should end wasteful expenditures, improve social services for all citizens, concentrate on human skills, tap resources and reduce inequalities.