Karachi: Governor State Bank of Pakistan (SBP) Dr Reza Baqir on Tuesday (February 22) launched Pakistan’s first warehouse infrastructure development loans for the agri-sector in Pakistan, news sources reported. Under the project, the central bank, in association with commercial banks, will provide Agri loans at a markup rate of 6%.
Reportedly, with the Electronic Warehouse Receipt Financing (EWRF) system, the farmers can get loans in simple terms to store cash and food crops. This will improve their long-term viability and capacity. Baqir stated at the Launch & Roadshow event in Kasur district that the goal of EWRF is to assist and expand the breadth of agri-financing through EWRF for farmers across the country. He also stated that the central bank has allocated PKR 1.7 trillion for agricultural loans, higher than last year’s budget of PKR 1.5 trillion. He also asked the corporate sector to develop warehouses in rural regions to help farmers enhance their capacity and per acre production.
The SBP governor also stated that the country’s economy is doing well in agri-related industries. However, he regretted that the rules had resulted in just 50% of all growers receiving loans, whereas the remaining farmers went unnoticed. According to the scheme, warehouses will be able to request loans amounting to 70% of total farm production, and the commercial bank will make a credit decision within one week.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
