KARACHI - Extending concessions to private sector for wheat procurement, the State Bank of Pakistan on Saturday withdrew minimum cash margin requirement of 10 per cent of the value of the commodity stock on wheat financing for FY2008-09. Earlier, SBP in its circular issued on 30th January 2009, had toughened the conditions for private sector and financing made conditional to minimum cash margin requirement of 10 per cent of the value of the wheat stock. While, SBP issuing another circular on Saturday 25th April, 2009, about three months later than earlier circular of 30th January, the SBP has withdrawn the 10 per cent cash margin condition for private sector. The State Bank has made it clear that other instructions on the subject would be remained unchanged. According to these conditions, the fresh financing to the eligible borrowers for procurement of wheat during 2009 would start from commencement of wheat procurement season 2009 in respective provinces. When contacted by The Nation, Bilal Sufi adviser to the Pakistan Flour Mills Association (PFMA) lauded the SBPs decision and termed it a positive step for private sector. Finally, SBP has accepted the flour milers demand for zero rate cash margin on financing for wheat procurement. Meanwhile, SBP has maintained that the loans would strictly be for fresh indigenous wheat only and would be repayable till Jan 31, 2010 and other conditions will remain unchanged. Furthermore, central bank in its earlier circular had said, the banks will provide financing facilities against pledge of fresh wheat stock only and will not extend funds to the private sector for procurement of wheat against hypothecation or charge of moveable or immovable property. Besides, the banks will be under obligation to immediately recall the advances allowed to the private sector in case of hoarding of wheat by the functional flour mills.