Press Release by The Bank of Punjab on the occasion of signing ceremony for Wheat Procurement

 The Bank of Punjab under the directives of Punjab Chief Minister has been making financing arrangements for wheat procurement on yearly basis. In the previous year one of the highest levels of wheat was procured in the history of Pakistan by Punjab Food Department and the Punjab Chief Minister ensured arrangement of funds and payments to the ultimate growers. The current wheat crop is once again reveals bumper crop. With a commitment to make National Wheat Sustenance Programme a towering success the Management of The Bank of Punjab held a graceful ceremony on Tuesday, April 6, 2010 at 4.30 pm at Qasre Noor, Gulberg III, Lahore to seal foundational contracts of Consortium Funding of sterling size.

Each year Federal Government sets support prices for Cash Crops and entrusts operational targets to different agencies at Federal and Provincial level to restrict the influence of exploitive intermediaries. Even then this pattern has sustained historically. During last two years the Government of Punjab has taken a clear and solid & stance towards food self sufficiency and welfare of small farmers. The Bank of Punjab under the directives of The Punjab Government is fortifying this pledge and has assumed the role of an Arranger. Last year, in order to support operational target of Food Department of Punjab set at 5.781 Million Metric tones, the Bank of Punjab assembled a large liberal (multi-polar) Consortia of Rs.150.00 Billion with the Co operation of Five Major Banks and others, to which BOP converged group participated Rs.34 Billion, the then first ever highest participation with first time inclusion of many Private Commercial as well as Islamic Banks. For the Current year, the Bank through critical cross over has been able to capitalize a total financing arrangement of Rs.180.00 Billion, which secures a net inflow of Rs. 73 billion i.e. 68% of existing outstanding. The BOP converged group would, whilst breaking its own record, made arrangements of over Rs.50.00 Billion, which is 177% of existing outstanding balance. In this regard, Bank Alfalah Ltd., Askari Bank Ltd., First Women Bank Ltd., Habib Metropolitan Bank Ltd., KASB Bank Ltd., Faysal Bank Ltd., Meezan Bank Ltd., Bank Albaraka Ltd., Dubai Islamic Bank Ltd., Bank Islami, Emirates Emirates Global Islamic, Dawood Islamic Bank Ltd., Soneri Bank Ltd. (Islamic Banking Group), and the Bank of Khyber on April 6, 2010 have signed off the Consortium deal.
The Bank of Punjab will also act as disbursing agent due to its wide distribution channel of 273 branches. BOP is a pace leader in introducing a wide range of structured Agricultural Financing Products.