KARACHI: Deputy Governor State Bank of Pakistan (SBP) Ms Sima Kamil addressing a 2-day specialized
training workshop on Electronic Warehouse receipt financing (EWRF) for banks observed that the
subject training program will be instrumental to support SBP’s recent initiative to promote EWRF in the
country and banks will be able to get hands on knowledge about EWRF product development,
understanding the risk analysis, price determination mechanism and the international best practices.
She encouraged senior bankers to use the relevant knowledge of EWRF gained during the session and
disseminate it in the industry for its smooth implementation.
EWRF is a mechanism whereby farmers can avail financing facility from banks by placing their produce
and agricultural commodities. By doing so, farmers can avoid selling their produce on unfavorable
prices just to ensure cash flows to meet input requirements of next crop. It will also help in reducing
Pakistan’s high post-harvest losses. Adoption of EWRF by banks and its enhanced uptake will not only
facilitate banks to achieve higher levels of agriculture credit disbursement but will also help them
enhance credit outreach.
Ms. Sima Kamil noted that agriculture contributes almost a quarter to our GDP and employs half of the
labor force; however, she regretted that people associated with agriculture sector face challenges in
access to finance and modernize infrastructure that may facilitate them either in storing or timely
disposal of their agricultural produce. She added that SBP took the initiative of EWRF in view of the role
of warehousing regime in increasing food security, reducing post-harvest losses and allowing bank
financing to farmers against commodities as collateral. She hoped that it will facilitate traders and
processors to purchase inputs they need, including seeds, fuel and fertilizers, before and during the
harvest, when their seasonal financing needs are significant. Parallel it will encourage investment in
agricultural infrastructure in terms of building new, modern and commercially viable warehousing
infrastructure. At outset, 25 banks signed System Usage Agreements (SUAs) with Naymat Collateral
Management Company and SBP assigned indicative financing targets to these banks for FY 2021-22 and
2022-23. Now, these banks have started financing against maize crop in various districts of Punjab
under EWRF regime.
The Deputy Governor acknowledged the support extended by IFC in terms of technical assistance to
Government of Pakistan and other key stakeholders to make building blocks for EWRF in Pakistan. She
expressed gratitude for IFC team led by Mr. Zeeshan Ahmed Sheikh and Ms. Nouma who has been
coordinating an IFC collaborated project for promotion of EWRF in Pakistan. She also encouraged senior
bankers to use the relevant knowledge of EWRF and disseminate in the industry for its smooth
implementation.
Speaking on the occasion IFC’s Country Manager for Afghanistan and Pakistan Mr. Zeeshan Sheikh
observed that innovative financing models, such as electronic warehouse receipts, are extremely
important as they can unlock a massive amount of capital, bolstering the farming sector and, over the
long run, supporting job creation and economic growth. He also acknowledged the Government of
Japan for supporting the EWR work.
SBP organized the two-day training workshop in line with the EWRF Uptake Action Plan in collaboration
with IFC (World Bank). During the workshop, global experts from IFC and Pakistan shared their
