KARACHI, Feb 19: The State Bank has informed all banks through a circular that wheat has been put on the list of the items whose exporters are eligible for seeking export finance under part I of export finance scheme.

The SBP has issued a circular (BSD no 8) that also informs the bankers that exporters of bones have also been allowed to get export finance facility under both part I&II of export finance facility.

The circular says the decisions would take immediate effect.

It says that export finance facility would be permissible to private sector exporters only at post-shipment stage.

Former chairman of Pakistan Flour Mills Association, Qazi Afzal Abid said the export finance facility would help exporters speed up wheat export particularly to war-torn Afghanistan.

“There is a huge demand for wheat in Afghanistan and luckily we have got enough surplus,” he said while talking to Dawn by telephone.

Recently the government allowed export of wheat and its by- products by the private sector, but most of the exporters kept waiting for the banks to start providing export finance. “The issuance of the circular should encourage all those who were waiting for export finance facility...they should now export wheat in a big way,” Abid said.