SBP doubles subsidised financing for hospitals

Published September 30, 2020
The State Bank of Pakistan has decided to double the amount of subsidised financing to establish hospitals in the country, a circular issued by the central bank said on Tuesday. — File
The State Bank of Pakistan has decided to double the amount of subsidised financing to establish hospitals in the country, a circular issued by the central bank said on Tuesday. — File

KARACHI: The State Bank of Pakistan has decided to double the amount of subsidised financing to establish hospitals in the country, a circular issued by the central bank said on Tuesday.

“It has been decided to enhance loan size from Rs500 million to Rs1 billion per hospital,” the SBP said. The bank further said the scheme for setting up of new hospitals will remain valid up till June 30, 2021.

The State Bank has been providing subsidised financing for hospitals in view of the Covid-19 pandemic.

During the peak of coronavirus in the country, the government found it difficult to deal with the size of the infections while private hospitals were also not equipped properly to deal with thousands of Covid-19 patients in all the provinces.

In an earlier circular, the SBP extended flexibility for the health sector under its Refinance Facility to Combat Covid-19 (RFCC). Through a circular the central bank allowed hospitals and medical centers to obtain subsidised financing against the existing equipment and purchase of refurbished equipment as well, provided the same are used in creation of special facility and isolation ward to deal with Covid-19.

On March 18, SBP Governor Dr. Reza Baqir announced a the RFCC scheme to help hospitals and health care facilities engaged in containing the spread of coronavirus across the country.

He said the scheme will extend financing to hospitals and medical centers registered with the provincial or federal health agencies at 3 per cent. Medical establishments could avail the facility for purchase of equipment to detect, contain and treat the coronavirus.

The total size of the scheme was set at Rs5bn with a maximum financing limit per hospital of Rs200m. This limit has been now increased to Rs1bn per hospital.

A number of special facilities were established and laboratories were activated to test Covid-19.

Published in Dawn, September 30th, 2020

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

ICJ rebuke
Updated 26 May, 2024

ICJ rebuke

The reason for Israel’s criminal behaviour is that it is protected by its powerful Western friends.
Hot spells
26 May, 2024

Hot spells

WITH Pakistan already dealing with a heatwave that has affected 26 districts since May 21, word from the climate...
Defiant stance
26 May, 2024

Defiant stance

AT a time when the country is in talks with the IMF for a medium-term loan crucial to bolstering the fragile ...
More pledges
Updated 25 May, 2024

More pledges

There needs to be continuity in economic policies, while development must be focused on bringing prosperity to the masses.
Pemra overreach
25 May, 2024

Pemra overreach

IT seems, at best, a misguided measure and, at worst, an attempt to abuse regulatory power to silence the media. A...
Enduring threat
25 May, 2024

Enduring threat

THE death this week of journalist Nasrullah Gadani, who succumbed to injuries after being attacked by gunmen, is yet...