Financial assistance for laid off worker

Industrial enterprises have lain off a large number of workers as result of shut down of production lines after the break out of coronavirus pandemic. The vendors who manufacture auto parts for automobile industry had fired 4, 5000 daily wagers before this pandemic. Economic Coordination Committee of the Cabinet has approved Rs.75 billion for the disbursement of salaries to the out of job workers of private sector industrial enterprises, which have been affected by the lock down imposed in the country to stop the spread through local transmission of the virus. The rate of local transmission has gained momentum during the past few days.

The amount shall be released from the Prime Minister’s relief package of Rs.200 billion, out of which Rs.100 billion have been allocated for small and medium scale enterprise and agriculture. Each deserving person will receive Rs.12, 000 as compensation. The disbursement will take place under “Mazdoor ka Ehsas Programme,” part and parcel of Ehsas Initiative.

In addition to the provision of financial assistance to out of job industrial workers, federal government is keen to protect the employment of labourers whose job is still intact. State Bank of Pakistan has directed scheduled banks to provide refinancing at zero rate of interest for which necessary prudential requirements have been relaxed such as collateral condition and further reduction in end-user rate.  It should be made mandatory for the entrepreneurs, who avail the zero interest rate refinancing facility, to put in place a transparent accounting procedure for the disbursement of salaries to their employees. Disbursement of salaries to industrial workers should be made through their individual bank accounts by way of transfer from corporate account of the enterprise instead on salary sheets maintained by the accounts sections of different industries. If the finances provided for the protection of workers’ employment to the sole discretion of employers, then misappropriation of funds cannot be ruled out. Strict monitoring shall be required to ensure that funds allocated for this purpose reach actually to the pockets of industrial workers. The workers employed in the informal sector also need assistance from the Prime Minister’s relief package and must be accommodated therein.