ISLAMABAD: Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh today (Wednesday), chaired a meeting to discuss a framework to facilitate farmers through Warehouse Receipt Financing (WHRF), ARY News reported.
The Adviser was briefed about the importance of storage infrastructure for agriculture commodities which could save billions of rupees and make the agriculture sector more competitive.
In order to address the issue of post-harvest losses and enhance farmers’ access to agriculture credit, the meeting emphasized introducing formal commodity management and Warehouse Receipt Financing System.
The meeting discussed key challenges being faced during the implementation of WHRF in Pakistan, including lack of a regulatory framework for Collateral Management Companies (CMCs) and lack of capacity of Banks and other stake holders to facilitate farmers in provision of the facility.
The meeting discussed a draft law for Collateral Management Company, the proposed law will create linkages between warehousing, collateralization, issuance of Electronic Warehousing Receipt (eWHR) and eWHR Financing.
The Adviser appreciated the efforts made by the Securities and Exchange Commission of Pakistan (SECP) and State Bank of Pakistan (SBP) in establishing the Warehouse Receipt Financing Facility in Pakistan.
It was also decided to hold another meeting in the next month to review the progress of the subject. The Adviser directed concerned quarters that the final draft of proposed law should be submitted in 4 to 5 weeks’ time after consultation from all the relevant stakeholders.
The meeting was attended by Chairman SECP, Governor SBP, Acting President Zarai Taraqiati Bank Limited (ZTBL), Secretary Agriculture Punjab and Chairman Public Accounts Committee (PAC) along with Mr. Jahangir Khan Tareen.
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