KARACHI – In this increasingly challenging time and due to the Global Economic Crisis the Financial Difficulties of the Business Community in Pakistan is surging. There is no recovery of Receivables possible further taking an additional Debt at such a High-Interest Rate is also not a viable option said Ateeq Ur Rehman (Economic & Financial Analyst).
He said that most of the Industries, Businesses, and SMEs are witnessing a major downturn¸ current Lockdown has created a situation where the majority of them are Defaulting or close to Bankruptcy. SBP should provide one-time Interest-Free Loans to Manufacturing Industry, Business Community and SMEs in particular for a minimum of a period of 6 months 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 a huge interest rate, it is practically not possible.
He added that under this Lockdown scenario the Employer’s perspective is extremely difficult. Consequently it may become difficult for Enterprises, Retailers, Wholesalers, Shop Keepers, 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, Government should end wasteful expenditures, improve social services for all citizens, concentrate on human skills, tap resources and reduce inequalities.
He requested that this is the time for the Financial Institution / Banks to pour hands on the deck. Company’s CSR and Philanthropies should join hand with the Government to work on feeding those who cannot afford.
