State Bank of Pakistan

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of

REFINANCE SCHEME FOR PAYMENT OF WAGES AND SALARIES

TO THE WORKERS AND EMPLOYEES OF BUSINESS CONCERNS

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 State Bank of Pakistan

WS-1
REFINANCE APPLICATION FORM
TO BESUBMITTED BY THE APPROVED BANK / DFI UNDER
REFINANCE SCHEME FOR PAYMENT OF WAGES AND SALARIES
TO THE WORKERS AND EMPLOYEES OF BUSINESS CONCERNS

Date: ____________

The Chief Manager,

State Bank of Pakistan,
Banking Services Corporation,
____________________ (City)

Dear Sir,
REQUEST FOR RELEASE OF REFINANCE
UNDER THE REFINANCE SCHEME FOR PAYMENT OF WAGES AND SALARIES
TO THE WORKERS AND EMPLOYEES OF BUSINESS CONCERNS

With reference to the Limit of Rs.__(total)_____ sanctioned by Infrastructure, Housing & SME
Finance Department of State Bank vide its Letter No. ______________________ dated___________
under the Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of
Business Concerns(the Scheme) for the period_____; we submit herewith our application for refinance
facility amounting to Rs. ____(current application)(Rupees________________only) against the
finance disbursed by us from (date) till date under the captioned Scheme to our borrowers, as the
details given in table 3: -

2. We undertake that total refinance availed for the borrowers/employers by the bank/DFI does
not exceed the maximum financing limit prescribed by the SBP for a single entity under subject
Scheme.

3. We certify that the details of the worker(s) and employee(s) given by the
borrowers/employers named in Table 3 and the payments made by us for those worker(s) and
employee(s) have been placed in our record and shall be invariably provided to the inspection team(s)
of SBP during the inspection of our bank/DFI. Further, the details of financing disbursed directly to the
borrowers/employers for their cash payment(s) of wages and salaries are given in table 1 placed
below.

4. We have already submitted/submit herewith the securities documents required under the
captioned Scheme for the purpose of availing refinance to the extent of the limit sanctioned by the
Infrastructure, Housing & SME Finance Department in our favour to your office vide our letter No.
_____________ dated _______________________. We also submit herewith/have already submitted
a Demand Promissory Note for Rs.__________________________ (Rupees
_____________________________only) signed by the borrowers/employers named in table 3
referred to above and endorsed by us in your favour and request you to provide refinance of
Rs.________________ (Rupees___________________________only) being wages and salaries to be
paid by employers/borrowers to their workers and employees of our above referred financing limit
and credit our Current Account with you.

5. We hereby certify that:-

i) the terms & conditions as stipulated in the captioned Scheme have been complied with;

ii) all the requirements of the Scheme have been fully met;
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 State Bank of Pakistan

iii) the eligibility of employers/borrowers and the relevant cost of wages and salaries to be paid
by employers/borrowers to their workers and employeesagainst which refinance is applied
for has been properly determined by us in accordance with the prescribed criteria/conditions
set out in the Scheme in force on the date of the Financing Agreement/Undertaking referred
to above;

iv) the underlying procedure and the mode of payment are in accordance with the procedure
prescribed by our bank/DFI, as also guidelines given in the Scheme;

6. We understand that the Infrastructure, Housing & SME Finance Department, State Bank of
Pakistan has right to appoint independent consultants for verifying cases of refinance on random basis
and agree to reimburse the cost so incurred in case the report of consultants indicates any
irregularities on our part. We also agree to pay back any amount of refinance disbursed to us by the
State Bank on the basis of this application if the State Bank subsequently concludes that such refinance
was wrongfully claimed and also pay fine on such finance @ paisa 60 per day per Rs. 1,000 or part
thereof, for the period for which such finance is availed by us immediately, on demand made by the
State Bank.

7. We also undertake that in case such irregularities are found to have been committed by the
borrower due to negligence of our concerned officials/staff to ensure compliance of the same or that
such irregularities have been made by the borrower with the involvement of our staff/officer, besides
initiating appropriate action against our staff under our staff regulations or code of conduct, we shall
indemnify the State Bank against any losses that it may suffer due to litigation filed by the borrower
on account of recovery of amount of refinance and the fine thereof for availing of refinance to which
we were not entitled otherwise.

8. We hereby also authorize SBP BSC to recover the full or remaining outstanding amount of
refinance alongwith mark up, if any, in case the amount(s) falling due is not repaid by us on the due
date(s) agreed to by us as per Agreement on Form WS-2 executed by us.

Yours faithfully,

___________________ ___________________
(Authorized Signature with (Authorized Signature with
name and designation) name and designation)
Vice President or above Vice President or above

Encl: ________________________________________
________________________________________
________________________________________
________________________________________

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 State Bank of Pakistan

WS-2

FORM OF THE AGREEMENT TO BE OBTAINED FROM THE BANK /DFI

REFINANCE SCHEME FOR PAYMENT OF WAGES AND SALARIES
TO THE WORKERS AND EMPLOYEES OF BUSINESS CONCERNS

(TO BE STAMPED AS AN AGREEMENT IN ACCORDANCE WITH THE

LAW IN FORCE IN EACH PROVINCE)

(Place)_______________
Date_________________
The Chief Manager,
State Bank of Pakistan,
Banking Services Corporation,
______________ (City)

Dear Sir,

In consideration of your agreeing to make available to us refinance under Section 22 read with
Section 17 (2) (d) of State Bank of Pakistan Act, 1956, not exceeding
Rs._____________________________ (Rupees _____________________________ only) under State
Bank of Pakistan’s Refinance Scheme for Payment of Wages and Salaries to the Workers and
Employees of Business Concerns (subject Scheme), for ___________ years vide Letter No.------------
dated --------------- for which amount we i.e. ____(concerned bank / DFI) have delivered to you a
Demand Promissory Note made by us in your favour.

2. Now, we do hereby agree to the terms and conditions as set out herein under :-

a. As security for the said refinance on each occasion we intend to avail refinance against finance
extended by us, we shall deliver to you, bills of exchange/demand promissory notes duly
endorsed in your favour, as are acceptable to you and drawn on and payable in Pakistan,
arising out of bonafide finance provided by us to our borrower, an entity eligible for financing
as per criteria spelt out in the Scheme, under the subject Scheme and it is understood that the
aforesaid accommodation may be made and will continue on the faith of the truth and
correctness of such certificates.

b. We undertake that we shall not extend finance or deliver to you any bill of exchange/demand
promissory note in terms of this agreement unless we are satisfied that all parties liable
thereon are financially sound and credit worthy.

c. The maximum rate of mark up to be charged by us from the borrower shall not exceed by
__%p.a. for SME clients and __%p.a. for corporate clients from the service charges (mark-up)
payable to you on refinance as worked out under the provisions of the Scheme.

d. Service charges shall be payable by us to you on quarterly basis(as on 30th September, 31st
December,31st March and 30th June) or on maturity of the bills or promissory notes, whichever
is earlier. Where the above schedule date falls on a public/weekly holiday we shall make
payment of the due amount of service charges on next working day after such due date. It
shall be open to you to reimburse yourselves with the amount of service charges by charging
the same to our current account with you in case we fail to make payment on the due date in
full, as required under the Scheme without seeking any debit authority from us. You shall also
be entitled to charge fine on us, at a rate specified in the Scheme from time to time, on our
failure to make payment on account of inadequate balance in our account.
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 State Bank of Pakistan

e. The maximum amount of finance that you shall provide to us would be equal to the amount
actually disbursed by us under the Scheme.

f. The Demand Promissory Note (notice of dishonour of which Promissory Note is hereby waived
in terms of Section 98 of Negotiable Instrument Act, 1881) furnished by us with this agreement
and the demand promissory notes delivered to you in terms of clause (i) below shall,
notwithstanding the existence of a credit balance at any time or any partial payments or
fluctuations of accounts or withdrawal of any part of this security, be a continuing security for
repayment of all sums due or found due under this agreement, alongwith Service Charge due
thereon to you, and all costs, charges or expenses, which you may be entitled under the law
to recover from us.

g. We shall neither sanction nor permit any of our customers to use the finances for any purpose
other than those prescribed under the Scheme. Any finances provided by us under this
Scheme shall be subject to the terms of our Charter. Further, we shall obtain a declaration
from our borrower to the effect that he/she shall not utilize the finances or any part thereof
except for the purpose spelt out in the Scheme.

h. No finance under subject Scheme shall be given by us to any of our Directors or to any
company, firm or group or association or project in which any of our Director is interested
either directly or indirectly except in finance against tangible security which will be provided
with the approval of the majority of our Directors excluding the Director concerned.

i. We shall endorse and deliver to you demand/usance Promissory Notes executed in our favour
by our borrower under this financing arrangement with a certificate that (i) the same arises
out of bonafide finances provided by us under the Scheme (ii) all parties liable thereon are
financially sound, solvent and credit-worthy and that by virtue of such endorsement and
delivery, we certify the genuineness of signatures as well as authority of all persons thereon
(iii) the finances provided to parties liable on such promissory notes have not been classified
as substandard/doubtful/loss.

j. Without prejudice to your rights as financier against us for the realization of any
demand/usance promissory note delivered to you under clause (i) at maturity, we agree, if
you so desire, to take at our expense, all steps as may be necessary to realize the money from
our customer and forthwith pay the same to you. We agree that the fact of your not taking
steps to endorse payment of such demand/usance promissory note or any of them against
the signatory or signatories thereon shall in no way release us from our liability thereon and
we agree that it shall not be necessary for you to give any notice of dishonour of such
Promissory Note.

k. In addition to clauses ( i ) & ( j ), we shall hold upon trust securities/security documents

presently held by us or which may be obtained by us from our customers to whom finance is
made available under this Scheme as security for due repayment of finance with return/profit
thereon. Further, on your demand we undertake to assign to you all such securities and
secured documents, and agree that upon such assignment the provisions of clauses (i) and (j)
shall, mutatis mutandis, apply.

l. In addition to the preceding three clauses, we agree that as and when you demand, we shall
create valid legal charge on any or all of our assets as may be demanded by you.

m. We expressly understand that you are entitled to cancel or recall or advance the date of
repayment of this finance at any time and for any reasons without any prior notice to us and
that you are not obliged to provide any finance to us any time and for any reason against this
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 State Bank of Pakistan

Scheme and that by executing a promissory note in your favour of lodging demand/usance
promissory note under clause (i) or by providing finance to any customer on the faith of this
agreement, we have acquired no right or claim to demand finance from you under this
Scheme. We also expressly agree that you have the sole right to vary, amend, alter or add to
the terms and conditions of this agreement without any reference to us and we agree to
invariably comply with the same.

n. We agree that on default of repayment by us on any promissory note tendered under this
agreement, you have our authority to debit without further reference to us, all of our accounts
now held or held hereafter or adjust any moneys worth which may, howsoever, become due
from you or come into your possession or control to the extent of the amount due from us
under any such promissory note or in terms of the clauses referred herein before or otherwise
under this agreement.

o. We agree that notwithstanding anything contained elsewhere in this agreement, the amount
of this finance alongwithService Charge due thereondue to you will become due and payable,
if we commit breach of any of the terms and conditions of this agreement.

p. No indulgence or delay in exercising any of your rights hereunder shall be deemed a waiver of
any right and no waiver of any of your right hereunder shall be construed as a waiver of any
other rights you may have.

Yours faithfully,

___________________ ___________________
(Authorized Signature with (Authorized Signature with
name and designation) name and designation)
for ____(Bank / DFI)_____ for ____(Bank / DFI)_____
Vice President or above Vice President or above

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 State Bank of Pakistan

WS - 3

DEMAND PROMISSORY NOTE *

(TO BE SUBMITTED BY BANK/DFI)

Place: ______________
Date: _______________

Rs._____________________

On demand we (name of the bank/DFI)promise to pay to the State Bank of Pakistan,

Banking Services Corporation (Bank), (City) or order the sum of Rs.
________________________(Rupees ______________________________ only) for value received
plus service charges @ _____% p.a. determined by SBP for re-financing under Refinance Scheme for
Payment of Wages and Salaries to the Workers and Employees of Business Concerns.

(Authorized signature of the FINANCING

BANK/DFI)

( Name & Seal )

* To be stamped in accordance with the law in force in each Province.

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 State Bank of Pakistan

WS -4

DEMAND PROMISSORY NOTE *

(TO BE SUBMITTED BY THE BORROWER)

Place:______________
Date_______________

Rs._____________________

On demand we (name of the borrower / employer) promise to pay to the _____(name

of the bank / DFI) or order the sum of Rs. ________________________(Rupees
______________________________ only) for value received plus service charges @ _____% p.a.
determined by ______(name of the bank / DFI)____ for financing under Refinance Scheme for
Payment of Wages and Salaries to the Workers and Employees of Business Concerns.

( Authorized signature of the borrower)

( Name & Seal )

Note :- Demand Promissory Note requires to be endorsed by the bank / DFI concerned in favour of
its head office / principal office through which refinance is being claimed and further
endorsed by them in favour of the office of SBP BSC concerned.

* To be stamped in accordance with the law in force in each Province.

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 State Bank of Pakistan

WS - 5

UNDERTAKING/AGREEMENT TO BE SUBMITTED BY THE BORROWER

UNDER THE REFINANCE SCHEME FOR PAYMENT OF WAGES AND SALARIES
TO THE WORKERS AND EMPLOYEES OF BUSINESS CONCERNS
(TO BE STAMPED AS AN AGREEMENT IN ACCORDANCE WITH THE
LAW IN FORCE IN EACH PROVINCE)

(Place)_____________

Date ______________
The Manager,
____________________ Bank Limited/DFI,
____________________ Branch,
____________________ (CITY)

Dear Sir,

I/We do hereby certify and confirm that a finance of Rs. _____________________________

(Rupees __________________________only) has been allowed to me/us by you under Refinance
Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns(“the
Scheme”) of the State Bank of Pakistan on service charges basis @ _______% p.a.

2. I/We, further confirm and undertake that the aforesaid finance will be / has been obtained by
me/us only for the purpose of payment of salaries and wages to our employees as per the provisions
of the Scheme under reference. Further, I/We, confirm that aforesaid finance or any part thereof shall
not be utilized except for the purpose spelt out in the Scheme.

3. I/We, further confirm and undertake that the aforesaid amount of finance that will be availed
by me/us shall be utilized exclusively to meet the cost of salaries and wages to our employees.

4. I/We, do certify that the finance is being obtained by me/us against bonafidepurpose and
I/We submit the requisite documents alongwith this application for your consideration of extension
of finance facility to us from your bank/DFI under the (“the Scheme”).

5. I/we, certify and confirm that I/we have not obtained any finance against the above-
mentioned heading of salaries and wages to our employeesfrom any other Bank/DFI.

6. I/We, hereby confirm and agree that in the event of my/our failure to make payment on due
date you have our Irrevocable Authority without reference to us, to recover from me/us and debit
my/our Account No._______________________ maintained with you alongwith fine, if any as
prescribed under the Scheme. I/we, authorize the bank/DFI to reimburse itself with the fine amount
even if we have made a representation to SBP against imposition of fine under the Scheme.

7. I/We agree and understand that in the event that either SBP of PIFI avail their right to
withdrawal from the scheme for any reasons, all financing made as per the terms of the scheme shall
convert to mutually agreed regular terms and conditions of the PIFI and in case of no agreement this
will constitute an event of termination.

8. I/We agree that notwithstanding anything contained elsewhere in this agreement, the
amount of this finance alongwith Service Charge due thereon due to you will become due and payable
immediately, if I/we commit breach of any of the terms and conditions of this agreement.

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 State Bank of Pakistan

Yours faithfully,

_________________________
Authorized Signature of the Borrower/Employer

______________________________
Signature verified by the authorized
officials of Branch of Bank/DFI

Encl: ________________________________________
________________________________________
________________________________________
________________________________________

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 State Bank of Pakistan

Table 1: Information for Employees/Workers not maintaining any bank account

Sr. Name Name of Type of Name of CNIC Mobile Amount Date of

No. of Customer Customer Employee/ Number Number of Salary Disbursement
Bank (Corporate/ worker Disbursed
Commercial/ (Monthly)
SME)

1 2 3 4 5 6 7 8

Table 2: Information for facility Repayment Schedule

Sr. Name Name of eCIB Type of Limit Total Repayment First
No. of Customer Code Customer Allocated Amount Schedule Installment
Bank (Corporate/ availed due date
Commercial/ by
SME) customer
1 2 3 4 5 6 7 8 9
Quarterly

Table 3: Information for disbursement of the facility

Sr. Name Name of eCIB Type of Limit Amount
No. of Bank Customer Code Customer Allocated Disbursed
(Corporate/ during the
Commercial/ Week
SME)
1 2 3 4 5 6 7

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