KARACHI, Oct 13: The Trading Corporation of Pakistan has secured Rs5 billion from a consortium of five banks at a competitive mark-up to ensure prompt payment to ginners against the purchase of lint.

This was stated by TCP Chairman Syed Masood Alam Rizvi here on Wednesday. He said the corporation would need more than Rs10 billion to support its procurement drive. "We will borrow as much as needed to support our procurement operations. There is no dearth of fund to cotton procurement," he maintained.

He said the TCP had so far contracted for the purchase of 191,200 bales of cotton from the ginners till Wednesday, of which 5,000 bales had reached TCP godowns. Mr Rizvi pointed out that the TCP had made a payment of Rs10.4 million to the ginners on Wednesday against the delivery of 1,200 bales as a 90 per cent payment.

The remaining 10 per cent will be made after receiving the report of TCP inspectors for the quality requirements. The payment against remaining 3,800 bales will be made on Thursday, he added.

He said the TCP had decided to make payments as soon as it would receive the contracted bales at its godowns. Mr Rizvi said he would visit Multan on Thursday and hold meeting with the ginners' leadership to discuss and sort out problems if any relating to the ongoing procurement drive.

"I will hold meeting with newly-elected Chairman of the Pakistan Cotton Ginners Association (PCGA), Haji Muhammad Ibrahim and other office-bearers to discuss issues and procedures relating to our cotton procurement," he said.

The TCP chairman said that the cotton market had stabilized after the entry of the corporation and prices were gradually moving up due to hectic buying. These prices will further move up when textile mills will begin purchase, he observed.

Mr Rizvi said phutti prices were now ranging in the vicinity of Rs850 to Rs900 per 40 kg in Punjab and slightly lower in Sindh. -APP