The State Bank of Pakistan (SBP) will launch the Electronic Warehouse Receipt Financing (EWRF) at a maize crop roadshow in Kasur’s Chunian tehsil.
The short-term action plan for EWRF adoption will be formally launched at this time.
In partnership with commercial banks, the central bank hosts such events to boost the agriculture sector.
Last year, the SBP program helped to significantly enhance the country’s agriculture while also addressing food insecurity through the EWRF.
The EWRF began working on rice and paddy stocks in Hafizabad district in March of last year.
The Electronic Warehouse Receipt (EWR) is issued by a private SECP-registered firm that is linked to all commercial banks in the country via an electronic system.
“The company installs its system in a farmer’s warehouse.” Following installation, a receipt is given to the farmer detailing the stock (amount, quality, and price) available in the warehouse.
“With EWR, the farmer becomes eligible for finance/loan (70 percent of the total stock value) from any bank,” said an SBP official in an interview with Dawn on Saturday.
“Banks can process and approve such cases after the Electronic Warehouse Receipt is attached to the loan applications,” he noted.