Conditions on banks regarding wheat procurement financing withdrawn

KARACHI: State Bank of Pakistan (SBP) has withdrawn with immediate effect conditions placed on Commercial banks for providing financing facilities to the private sector with regard to procurement of wheat.

Banks are now free to extend financing facilities to the private sector for procurement of wheat keeping in view their lending policies, business consideration, risk profile of the borrowers and compliance with SBP regulations, said SBP circular (SMEFD No-15) issued here on Tuesday.

Earlier this year, the State Bank had placed several conditions on banks, which, inter alia, included fresh financing to the edible borrowers (licensed functional flour mills only) against pledge of fresh indigenous wheat only, cash margin restrictions and adjustment of loans by January 31, 2010.

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