Mian Nasser Hyatt Maggo President and Khawaja Shazaib Akram Senior Vice President Federation of Pakistan Chambers of Commerce and Industry urged the Prime Minister to extend the time period of the Temporary Economic Refinance Facility (TERF) for the industries. This low-priced refinance facility has promoted investment in new projects and expansion of existing. Stimulus by the government to local industries encourages them to achieve optimum growth, to generate employment, and contribute towards economic development. The SBP announced this scheme with effect from 17th, March 2020, till 31st March 2021 to help businesses through funding their investment plans and to expand projects in the difficult time of the pandemic COVID-19. This scheme can support in lessening the impact of COVID 19 on the economy of Pakistan and will contribute to the sustenance of the industry during the second wave of COVID-19.
He further said that if the Temporary Economic Refinance Facility (TERF) continues for another year it will bring down the unemployment, combat economic implications of the coronavirus lockdown, and enhance the business agility. According to the media reports at the end of December, banks have approved financing for BMR worth Rs263.8 billion under Temporary Economic Refinance Facility (TERF) by December 24, 2020. TERF has shown significant growth over the last nine months as reflected by an increase in a requested amount from Rs36.1 billion by the end of April 2020 to Rs557.6 billion by December 24, 2020, while over the same period approved financing has reached Rs263.8 billion from Rs0.5 billion.
FPCCI recommends that the decision to extend the time period of loans under TERF should be made timely to help foster economic activity, to regain momentum, and to increase industrial output.