In a statement issued by State Bank of Pakistan, it stated that under the SBP relief package announced in wake of coronavirus disease (COVID-19), 80368 borrowers benefited from deferment of principal repayment amounting to Rs. 20 billion, up till April 10, 2020. Further, advances amounting to Rs. 1.4 billion have been restructured. Moreover, 5126 application were under process with various commercial banks.
Earlier SBP introduced various relief packages to dampen the effects of the outbreak of Novel coronavirus disease on the economy of Pakistan. One of the packages include facility for commercial bank borrowers to defer the payment of principal on loans and advances by one year. To avail this relaxation, borrowers are required submit a written request to the concerned banks before June 30, 2020. However, the mark-up amount as per agreed terms and conditions shall continue to be serviced by the borrower. Further, as per the policy issued by SBP, the deferment of principal availed under this facility will not affect borrower’s credit history and such facilities will also not be reported as restructured/rescheduled in the credit bureau’s data. It may be highlighted here that the total amount of principal coming due over the next year is about Rs. 4,700 billion.
Various relief packages and policy measures taken by State Bank of Pakistan includes:
- SBP Refinance Scheme to Support Employment and Prevent Layoff of Workers.
- Relief Package for Households, Businesses & Refinance Schemes.
- Relaxing Credit Requirements for Exporters and Importers.
- Facilitating New Investment.
- Ensuring the Availability and Continuity of Financial Services.
