A Bank of Punjab-led consortium on Tuesday signed a financial agreement, worth Rs 71.3 billion, with Punjab Food Department, for wheat procurement campaign 2011. The consortium includes Askari Commercial Bank, Bank Alfalah, First Women Bank, Habib Metropolitan Bank, KASB Bank, Faysal Bank, Meezan Bank, Bank Albaraka, Dubai Islamic Bank, Soneri Bank, Bank Islami, Bank Al Habib, Habib Metropolitan Ban, Dawood Islamic Bank and My Bank.
The consortium is responsible for funding Rs 71.3 billion, which is Rs 20 billion higher than last year. Out of total financing requirement of Rs 205 billion for this year's campaign, a sum of Rs 132.8 billion will also be arranged through five large banks against Rs 139.4 billion arranged by them last year. BoP President Naeemuddin Khan said financing arrangements showed the overwhelming confidence of the financial sector on BoP and its management.
He thanked the participating banks for their role and reassured that the mission of Punjab Chief Minister to procure each and every grain of wheat crop would be accomplished by BoP with the support of participating banks and Punjab Food Department, as was done in the past.
He pledged that BOP through its countrywide network of 273 branches and staff is determined to provide full support to provincial Food Department to make the campaign for procurement of wheat crop in the province a success. He said that BoP was standing on strong footing and lending by several commercial banks for wheat buying was testimony of the fact they have confidence in BoP and were also partner in the road to progress. He made it clear that there was no interference by any quarter in the affairs of the bank.
The Bank of Punjab has been arranging financing for wheat procurement on behalf of the Punjab government since year 2003. Last year, the Bank of Punjab, under directive of Chief Minister of Punjab arranged financing of Rs 51 billion through a consortium of private commercial and Islamic banks.
To compliment the vision of the Chief Minister, Punjab Food Department this year has set a target of procurement of four million tons of wheat. The Bank of Punjab has once again been assigned the lead role for arranging the financing. Irfan Elahi, Provincial Secretary, Food, said that financing for wheat operation was being made on KIBOR plus 2.75 mark-up, which will be reviewed after every three months. He said that provincial Food Department handled record wheat last year besides record export in short span of time. He also thanked banks for posing confidence in operations of Food Department.