Undoubtedly, the novel COVID-19 disrupted the economy of Pakistan. To mitigate the impact of coronavirus, State Bank of Pakistan introduced a new scheme “Islamic Refinance Scheme for Payment of Wages & Salaries to the Workers and Employees of Business Concerns”. Primary purpose of the Scheme is to facilitate the businesses in making payment of salaries and wages to the staff. The idea behind the scheme is to support continued employment in the country in such a challenging situation and it will be expected to ease the cash flow constraints to the employers. Salient features of the scheme are as follows:

Scope and eligibility criteria

The objective of the scheme is to finance salaries and wages of permanent, contractual, daily wagers as well as outsourced employees of existing as well as new customers of banks and DFIs for the months from April 2020 till June 2020. Government entities, public sector enterprises, autonomous bodies and financial institutions will be considered as exception to the scheme.

Maximum financing limit

Under this scheme, maximum limit of a customer will be determined in the following way:


Wage bill for 3 months

Financing limit


financing limit


Less than or equal to Rs. 200 million

100% of actual 3 months wage bill

Rs. 200 million


More than Rs. 200 million and less than or equal to Rs. 500 million

Rs. 200 million or 75% of actual 3 months wage bill, whichever is higher

Rs. 375 million


More than Rs. 500 million

Rs. 375 million or 50% of actual 3 months wage bill, whichever is higher

Rs. 500 million

Customers availing this scheme will not be allowed to lay off their employees during first three months.

Financing tenure

The repayment under this scheme will be made in eight equal quarterly installments and the repayments will start from January 2021.

Rebate for filers

State bank of Pakistan will be offering a rebate of 1% (reduction in rate of refinance / service charges) to those who are listed as active taxpayers as per Income Tax Ordinance, 2001.


The scheme is valid till 30th June 2020.

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