The agreement is likely to be signed during the 14th Saarc summit to be held in New Delhi next month. Chief Adviser Fakhruddin Ahmed chaired the meeting held in his office.

While briefing newsmen, Chief Adviser's Press Secretary Syed Fahim Munaim said the proposed Saarc food bank will start functioning with a stock of 241,580 tonnes of rice and wheat.

Bangladesh will contribute 40 thousand tonnes while the other member countries will provide the rest of the stock, he said and added the Saarc Secretariat will be used as the bank's primary office.

The meeting also fixed the target, price and time limits of internal procurement of boro paddy, rice and wheat for the year 2007. The government will procure 50 thousand tonnes of wheat at Tk 18 per kg from March 20 to June 28.

It will also procure 12 lakh tonnes of rice, which includes three lakh tonnes of paddy and 10 lakh tonnes of rice between April 25 and August 31.

The council also approved in principle the draft to formulate the Financial Reporting Act-2007 with a view to bringing uniformity in the auditing and accounting system in the government offices as well as standardise it.

Under the Act, an 11-member financial council will be formed and the governor of Bangladesh Bank will head the council, he added.