Punjab wheat procurement: food department signs Rs 13.1 billion financing agreement with banks

Punjab Food Department on Monday signed an agreement with the Bank of Punjab (BoP), Bank Alfalah, Askari Bank Limited and Faysal Bank Limited to support wheat procurement in Punjab with a financing of Rs 13.1 billion. The President, BoP, Naeemuddin Khan, senior bank officials representing other banks and a senior official of the food department inked the agreement in the presence of senior bankers and food department officials.
Under the agreement, the consortium of these commercial banks, headed by the BoP would give a credit of Rs 13.1 billion for disbursement of payments to wheat growers. While addressing the ceremony, the BoP Chief said in the last 10 days Rs 2.3 billion has been dispersed and the figure would be doubled in the next few days. 14.77 percent markup is charged for financing the wheat procurement scheme, he said.
The Head of Retail Banking, BoP, Shahid Waqar Mahmood told newsmen that both the Albaraka Islamic Bank and Meezan Bank would also finance Rs 4 billion and the agreement is under process. According to a bank's spokesman, the BoP was appointed as arranger by the Government of Pakistan in the year 2003 to facilitate the financing for wheat procurement on behalf of Punjab Food Department.
The bank has been performing the functions of the arranger quiet successfully since then. The message of the Chief Minister Punjab that each and every grain of wheat crops would be procured from the grower is well acknowledged and supported by the BoP, which is arranging more funds from the banks.