Circulars/Notifications - Banking Supervision Department  
 BSD Circular Letter No. 12
June 27, 2001  

Chief Executives

All Banks

Dear Sirs/Madam,

SELECTIVE CREDIT CONTROL ADVANCES AGAINST WHEAT

 

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The existing instructions issued vide BPRD Circular letter No 12 of 1st May, 2000 stand withdrawn.



Yours faithfully,
(Shoaib Ahmad)
Additional Director
       
Home
About SBP
Publications
Economic Data
Press Releases
Circulars/Notifications
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Feedback
Contact us
What's New?
Speeches
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Library
Rupey ko Pehchano
Events
Zahid Husain Memorial Lecture
Careers
Sitemap
 
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.