KARACHI (November 11, 2009) – The State Bank of Pakistan (SBP) has withdrawn the conditions placed on commercial banks for giving financing facilities to the private sector for procurement of wheat with immediate effect.
“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 borrowers and compliance with SBP regulations,” says a circular of the SBP issued here on Tuesday. It may be recalled that earlier this year, the central bank had placed several conditions on banks which included fresh financing to eligible borrowers (licensed functional flour mills) only against the pledge of fresh indigenous wheat only, cash margin restrictions and adjustment of loans by January 31, 2010.
