- Economic Coordination Committee moves to support Small and Medium Sized Business which employs large number of unskilled labor
In a move to support small businesses, Government’s Economic Coordination Committee has decided to pay electricity bills for Small Businesses in the country for up to three months.
Government has included those businesses with up to 5KW Commercial Electricity Connections or up to 70KW Industrial Connections, where consumption data from the past will be used to compensate the small business consumers.
Government estimates that almost 95% of all commercial and up to 80% of all Industrial Connections will benefit from this support measure.
Federal Minister for Economic Affairs, Hammad Azhar took to Twitter to announce the Government Support.
ECC has today approved the package that shall benefit 35 lac small businesses.— Hammad Azhar (@Hammad_Azhar) April 27, 2020
For those with 5KW commercial or 70 KW industrial connections, the govt will pay their electricity bills for up to 3 months after they restart.
Consumption data from past will be used as a benchmark.
Government of Pakistan has been taking various measures to keep its economy afloat amid Corona Virus Pandemic and resultant impact on its economy. The economy of Pakistan is expected to decline by 1.5% in FY2020, where contraction is expected to cause up to 5 million increase in unemployment.
In order to contain the economic fallout of the pandemic, Government has previously taken out various measures including significant Reduction in Interest Rates, Relaxation to Businesses over Loan Repayments, Concessionary Loans for Staff payroll and Injection of liquidity in the banking sector.