At an occasion at Tehsil Chunian, District Kasur, the State Bank of Pakistan (SBP) would introduce Electronic Warehouse Receipt Financing (EWRF) for Maize Crop. Banks will sign System Usage Agreements with Naymat Collateral Management Company Ltd. (NCMCL) during the event in order to begin using the newly created system.
This method will not only provide farmers with suitable storage facilities for their goods, but it will also help them meet their liquidity needs, since these receipts will be utilized as collateral to get bank financing. Approved collateral management businesses will issue warehouse receipts in collaboration with their accredited storage facility operators. The worth of the harvested harvest will be determined and recorded on electronically generated warehouse receipts, which may subsequently be utilized to get bank financing.
SBP hopes to accomplish a number of goals with this initiative, including increasing the availability of formal credit to farmers who would otherwise be unable to secure bank financing due to a lack of acceptable collateral; reducing post-harvest losses by establishing a network of accredited warehouses where standardized agricultural produce can be stored; and ensuring better price discovery to help farmers increase their profitability and make better farming decisions. Various players, including the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, the Federal and Provincial Governments, and banks, collaborated to build the system.
