The State Bank of Pakistan on Wednesday clarified that 50 percent cash margin condition on the financing against the sugar stock would not be applicable to financing facilities given for cane procurement for the ongoing crushing season. As a step to curb the sugar hoarding, the SBP had imposed a condition of 50 percent cash margin for the financing of sugar vide BPRD Circular No 2 dated February 9, 2009.
However, on Wednesday the SBP clarified that the cash margin requirement imposed vide aforesaid circular is not applicable to financing facilities given for cane procurement for the ongoing crushing season. Industry sources said crushing season is going to end on March 31, 2009 and after that cash margin condition would be applicable on the financing against the sugar stock including raw and refined. However, other instructions on the subject will remain the same.
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