FPCCI seeks extension in TERF

KARACHI: Businesspersons on Tuesday urged the Prime Minister to extend Temporary Economic Refinance Facility (TERF) for industrial sector for another year to boost investment in new projects and expansion of existing.

“Such stimuli by the government to local industries encourage them to achieve optimum growth, to generate employment, and contribute towards economic development,” said the Mian Nasser Hyatt Maggo President Pakistan Chambers of Commerce and Industry (FPCCI), in a statement.

TERF was announced on March 17, 2020 and it expires on March 31, 2021.

Maggo said this scheme could help offset the impact of COVID 19 on the economy of Pakistan, enabling it to support the industry during the second wave of the pandemic.

“If the TERF continues for another year it will bring down the unemployment, combat the economic implications of the coronavirus lockdown, and enhance the business agility,” Maggo said.

According to the media reports, banks have approved financing for BMR worth Rs263.8 billion under 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,” Maggo said.