Covid-19 Relief Measures

Consumer

Relief to dampen the effects of COVID-19 for Islamic Consumer Products

Askari Islamic Ijarah Bis Sayyarah and Askari Home Musharakah customers affected financially by COVID-19 Pandemic may contact at: covidsupportislamic@askaribank.com.pk till June 30, 2020.

The bank will review the request on case to case basis and will communicate its decision within 15 working days from the time of submitting all required documents.

Following documents shall be sent along with the request:

Salaried Individuals:

  • Scanned copy of CNIC
  • Job termination letter by employer
  • Evidence of Salary reduction or delay
  • Any other relevant document
  • Contact number and email address

 

Self Employed Business Professionals:

  • Scanned copy of CNIC
  • Proof of financial impact/ Bank Statements
  • Any other document that shows financial distress
  • Contact number and email address

 

On case to case basis, bank may request for additional documents

Islamic Temporary Economic Refinance Facility (ITERF)

In order to support sustainable economic growth especially in the backdrop of challenges being faced by the industry in post-pandemic scenario, State Bank of Pakistan (SBP) has introduced “Islamic Temporary Economic Refinance Facility (ITERF)”, the details of which were communicated vide SBP IH&SMFED Circular No. 02 of 2020 dated March 17, 2020.

The facility will provide concessionary refinance for setting up of new industrial units.

Product Features and Parameters

Particulars Criteria
Purpose Shari’ah Compliant financing for imported and locally manufactured new plant and machinery to be used for setting-up of new projects.
Eligibility
  • All sectors across the board except power sector.
  • All LCs/ ILCs established after announcement of ITERF till expiry of the facility i.e. March 31, 2021 shall be eligible for financing.
  • Financing up to the C & F value of the imported new plant and machinery and/ or ex-factory/ showroom price of the new locally manufactured machinery to be purchased by the eligible customers.
Scope Exclusions
  • Power Sector
  • Acquisition of land & construction of building
  • Cost of Takaful/ Insurance, Transit Takaful/ Insurance, erection and commissioning charges and other incidentals (including transportation charges, in case of locally manufactured machinery) etc. shall not be financed under the facility
  • Second Hand Machinery
Target Market SME/ Commercial and Corporate Customers
Financing Limits Minimum: PKR 0.5 Million
Maximum: PKR 5.0 Billion
Currency PKR Only
Tenure of Financing & Grace Period 10 years including grace period up to 2 years
Expected Rate of Return from customer
  • Rates announced by SBP on similar refinance facilities.
  • Once fixed, the rate shall remain locked-in for the entire duration of the financing
Shari’ah Structure
  • Disbursement by SBP: Mudarabah (in General Pool of Bank)
  • Disbursement by Askari Ikhlas: Any mode of Islamic Finance approved by the Shari’ah Board
Approval Time
  • Within One month from the date of receipt of complete information.
  • When the request is declined, IBSD shall explicitly apprise the reason for rejecting the application to the prospective customer
Validity of Scheme Till March 31, 2021
Applicable Charges As per Schedule of Charges

SBP Circular: http://www.sbp.org.pk/smefd/circulars/2020/C2.htm

Islamic Refinance Facility for Combating COVID–19 (IRFCC)

In order to combat the impact of COVID-19, State Bank of Pakistan (SBP) has introduced a time bound emergency support for hospitals & medical centers by providing Islamic refinance facility to develop capacity for treatment of infected patients of COVID 19 vide SBP IH&SMEFD Circular No. 04 of 2020 dated March 17, 2020.

Product Features and Parameters

Particulars Criteria
Purpose Long term finance facility for purchase of new imported and locally manufactured medical equipment to be used for combating COVID-19
Eligibility/ Target Market All hospitals and medical centers registered with respective provincial/ federal agencies/ commissions engaged in controlling and eradication of COVID-19
Currency PKR
Financing Limits
  • Minimum Rs. 03 Million (per Hospital/ Medical Centre)
  • Maximum Rs.200 Million (per Hospital/ Medical Centre)
Tenor of Financing 05 years including grace period of up to 6 months
Repayment Mechanism Quarterly/ Half-Yearly
Expected Rate of Return from customer Rates announced by SBP on similar refinance facilities
Shari’ah Structure
  • Disbursement by SBP: Mudarabah (in General Pool)
  • Disbursement by Askari-Ikhlas: Any mode of Islamic Finance approved by the Shariah Board.
Validity of Scheme September 30, 2020
Applicable Charges As per Schedule of Charges

SBP Circular: http://www.sbp.org.pk/smefd/circulars/2020/C4.htm

Islamic Refinance Scheme for Payment of Wages & Salaries to the Workers and Employees of Business Concerns (IRSPWS)

In order to o combat the impact of COVID-19 and to help the businesses in payment of wages and salaries to their workers and employees and thereby support continued employment in this challenging environment, State Bank of Pakistan (SBP) has introduced Islamic Refinance Facility to ease cash flow constraints of the employers and thereby avoid layoffs vide SBP IH&SMFED Circular No. 07 of 2020 dated April 10, 2020.

Product Features and Parameters

Particulars Criteria
Purpose Shari’ah Compliant financing for payment of wages and salaries of permanent, contractual, daily wagers as well as outsourced employees of existing and new customers of banks.
Eligibility/ Target Market Businesses that are:

  • Impacted by Corona virus situation
  • Labor Intensive
Scope Exclusions Following entities shall not be eligible to avail financing:

  • Government Entities
  • Public Sector Enterprises
  • Autonomous Bodies
  • Financial Institutions including Banks, DFIs, Non-Banking Finance Companies (NBFCs)
  • Insurance and Takaful Companies
  • Securities Depository Companies and Trustees
  • Securities Brokers
  • Clearing Houses and Stock & Commodity Exchanges
Currency PKR
Repayment Mechanism Repayment of financing under the Scheme will start from January 2021. The repayment will be made in 08 equal quarterly instalments.
Expected Rate of Return from customer
  • Rates announced by SBP on similar refinance facilities.
  • The customers that are on active tax payers list under the Income Tax Ordinance, 2001 would be eligible for 1% p.a. subsidy on their financing rate.
Shari’ah Structure
  • Disbursement by SBP: Mudarabah (in General Pool of Bank)
  • Disbursement by Askari Ikhlas: Any mode of Islamic Finance approved by the Shariah Board
Validity of Scheme September 30, 2020
Further, in order to encourage those businesses who have met the terms and conditions of the scheme but could not avail this facility, will also be allowed to apply for 06 months salaries and wages including reimbursement for the months of April, May and June 2020.
Applicable Charges As per Schedule of Charges

SBP Circulars:
http://www.sbp.org.pk/smefd/circulars/2020/C7.htm
http://www.sbp.org.pk/smefd/circulars/2020/C9.htm
http://www.sbp.org.pk/smefd/circulars/2020/CL14.htm
http://www.sbp.org.pk/smefd/circulars/2020/CL15.htm