The Economic Coordination Committee has approved the Chota Karobar Imdadi package, which the government will use to pay retailers' electricity bills for three months when they return to the company.
The Cabinet Economic Coordination Committee (ECC) has approved Rs. 50.69 billion packages to indirectly support cash flow to SMEs through prepaid electricity.
کورونا کی وجہ سے جن لوگوں کی ملازمت، مزدوری چھوٹ گئی ان کے لیے وزیراعظم پاکستان کی ہدایت کے مطابق وزارت صنعت و پیداوار اور احساس پروگرام مل کے40-60 لاکھ مزدوروں کونقد امدادکی سہولت فراہم کرینگےاس مقصدکےلئے 75 بلین اضافی رقم مختص کی گئی ہے۔@Hammad_Azhar
— Tehreek-e-Insaf (@InsafPK) April 27, 2020
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The minister noted that this package will benefit more than 3.5 million small businesses. Every company or company with a business connection of 5 kilowatts or an industrial connection up to 70 KW benefits from the package.
There are approximately 95 under the Rs. 50.69 billion package, called the "ChotaKarobar o SannatImadadi package", which has been prepared by the Ministry of Industry and Production in active consultation with SMEDA's SME Development Agency (SMEDA)% of commercial consumers with a connected load of up to 5 kW and 72 percent of industrial consumers with a connected load of up to 70 kW receive financial support.
ECC has today approved the package that shall benefit 35 lac small businesses.
— Hammad Azhar (@Hammad_Azhar) April 27, 2020
For those with 5KW commercial or 70 KW industrial connections, the govt will pay their electricity bills for up to 3 months after they restart.
Consumption data from past will be used as a benchmark.
The system supports commercial consumers up to Rs. 100,000 and industrial consumers up to $ 450,000 in three months. The base period for estimating electricity consumption is May to July 2019 and the corresponding average is used for meters for which no consumption data is available for the entire base period.
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To use the power plant within the “ChotaKarobar o Sannat Imadadi package”, three months of pre-paid electricity bills or total bills are required during the base period. The extended financial support will last six months from May / June 2020.
The ECC also allowed Rs. 2.5 billion Block subsidies to AJK and GB for payment via special rules. The Ministry of Industry and Production was also asked to provide similar support packages to the agricultural sector, including the agricultural wells, as well as to transport companies and the microfinance sector.
ECC, as chairman of the prime minister's finance and revenue minister, Abdul Hafeez Shaikh also approved a $ 30 billion loan for loan losses to the State Bank of Pakistan Refinancing Program, a risk-sharing facility to support employment and prevent layoffs.
The ECC also approved a credit loss of Rs. 30 billion On a proposal from the Finance Department of the Risk-Sharing Facility of the State Bank of Pakistan's refinancing program to support employment and prevent redundancies among workers.
The program will extend funding to companies with a maximum turnover of Rs. $ 2 billion, while the Pakistani government would pay 40 percent of the initial loss of the distributed portfolio (majority only) to eligible borrowers in the event of repayment after being classified as "loss" according to the classification criteria of the relevant SBP prudential regulation. The banks and DFIs with limits allocated under the SBP system can run agencies.
On a proposal from the Ministry of Economic Affairs, the ECC has granted a basic approval for the restructuring of the Pakistani government's external debt, using G-20 debt relief and cooperating with bilateral donors to suspend the debt individually, provided that agreement was reached. can then be submitted to ECC for approval.
On the basis of another proposal from the Ministry of Defense, the ECC also approved the allocation of additional resources in the form of an additional technical grant from Rs. 3.02 billion For enclosing the Pakistani border.
