Lahore: Agriculture has a deep connection with the Pakistani economy. It would not be wrong to say that the development of agriculture is the development of Pakistan. Agriculture faces many challenges globally and especially in Pakistan.
This was stated by HBL Bank President Muhammad Aurangzeb while addressing opening ceremony of Electronic Warehouse Receipt Financing (EWRF) system in District Kasur on Tuesday.
SBP Governor Dr. Raza Baqir, Deputy Governor Seema Kamil, Chairman Nemat Collateral Abrar Hassan, Chairman SECP Amir Khan, Chief Secretary Punjab Kamran Ali Afzal and other government officials, presidents of banks, heads of corporate corporations related to agriculture, farmers were also present on the occasion.
“We all need to improve this situation because with the improvement of agriculture not only Pakistani farmers will be prosperous and their productivity will be improved but also the national economy will improve significantly and agricultural imports will also go up”he said.
In order to bring courage in Pakistani agriculture, it is necessary to increase the average yield of crops and after the cultivation of the crop, a system should be set up where farmers can voluntarily sell their produce at the right time, he added.
“Today, with the support of SBP, we are going to launch a system of warehouse receipt financing (electronic warehouse receipt financing). I welcome all of you to this historic occasion. The foundation of this journey was laid under CMC Regulation 2019. In 2020, Pakistan’s first collateral management company Nemat Collateral was established and the first EWR was issued in March 2021. HBL provided loan in return for this warehouse receipt. This warehouse receipt was for rice crop. In the last 11 months, about 10,000 tons of maize and rice have been provided loans under this modern system,” the HBL Bank President said.
To move this journey forward, it is imperative that the Federal Government, Provincial Governments, Food Department, State Bank of Pakistan, SECP, insurance companies, warehouse owners, Pakistan Mercantile Exchange and other food and agriculture companies collaborate and strengthen this system, Aurangzeb underscored, explaining that the biggest beneficiaries will be our farmers who are forced to sell their crops at exorbitant prices as soon as they start cultivating the crops.
“I would like to mention here the environmental pollution and therefore the climate change we are facing. At present about 15% to 20% of crops in Pakistan are wasted due to inadequate transportation, unavailability of warehouses and non-availability of credit for crops. By strengthening this modern system we can significantly reduce the loss of life. That is 20% less water, fertilizer, pesticides and diesel etc. This will have a positive effect on the environment and at the same time the farmer will spend less on the crop and earn more. I am hopeful that today’s road show will be an important step towards our common goals and will bring significant benefits to Pakistani agriculture and our farmers with confidence,” he pointed out, concluding, under this system, not only will you able to store your produce in a CMC-recognized warehouse, but you will also be able to obtain an agricultural loan in exchange for a CMC-separated receipt.
