SBP, commercial banks announce relief package
KARACHI: The State Bank of Pakistan (SBP) and the Pakistan Banks Association on Thursday announced a relief package to tackle the impact of coronavirus outbreak in the country.
As part of the package banks will allow people to defer payment of the principal loan amount for one year.
The SBP has decreased the limit of Capital Conservation Buffer from 2.5 percent to 1.5 percent. Due to this move, banks will have an extra Rs800 billion to disburse to people as loan. Also, the SBP has increased the limit of loans for small and medium industries from Rs125 million to Rs180 million per unit.
According to the SBP, individuals, who were earlier allowed to take loan up to 50 percent of their gross salary, can now get loan equal to 60 percent of their gross salary.