Please
refer to BCD Circular No 5 of 5th July, 1987, as
modified from time to time, in terms of which the minimum
margin requirement in respect of financing by banks for various
purposes have been prescribed.
With
a view to facilitate participation of private sector in the
procurement of wheat, it has now been decided to reduce the
prescribed margin in respect of advances extended by commercial
banks for wheat as mentioned at item AI (1) (vi) and AII (1)
(ii) of the aforesaid
circular as under:-
|
|
|
Margin
requirement |
|
|
|
Existing
|
Revised
|
|
AI
(1) (vi) |
Raw
Material to manufacturing/processing units of goods
– wheat only |
25%
|
10%
|
|
AII
(1) (ii) |
Wheat
to traders/growers |
35%
|
15%
|
It
has also been decided to allow the banks to freely finance
the procurement of wheat by flour mills from any source in
Pakistan and without any time restriction on the basis of
the annual manufacturing capacity of each flour mill. All
finances provided for procurement of wheat shall be interalia,
covered against the pledge of wheat stocks.
The
existing instructions issued vide BPRD Circular letter No
12 of 1st May, 2000 stand withdrawn.
|
