LAHORE - The Bank of Punjab has issued Pakistan’s first electronic warehouse receipt disbursement for maize crop. First The Bank of Punjab in collaboration with Naymat Collateral Management company has disbursed EWR Finance facility, which is first of its kind against maize stock in Pakistan.
Electronic Warehouse Receipt (EWR) is a digital instrument which gives financial institutions, real time information and access to farmers, who have placed their produce in an accredited warehouse, significantly reducing transaction cost and operational risks for the banks.
Under EWR Regime, The Bank of Punjab has taken the lead by disbursing the finance to its valued client against storage of maize stock at designated warehouse situated at Habibabad, Tehsil Chunian (District Kasur) which is operated by Matra Asia Pvt Ltd.
Citing the event of first disbursement under EWR Regime, Zafar Masud (President & CEO – The Bank of Punjab) said that the bank had always been on the forefront to meet financial needs of small farmers. This kind of financing is an innovative addition to the agri lending product menu of BOP and will revolutionize the agri-financing horizon of Pakistan by providing financial services under an electronically secured environment. BOP is committed to provide financial services to farmers with minimum documentation and fastest possible time with no property or collateral other than agri-commodity stored at designated warehouse.
This regime will help the farmers to overcome the problem of immediate selling of crops under compulsion to fulfill their instant working capital needs for the next crop. Besides, this will also minimize farmer’s exploitation by market actors and forces. He also added that BOP is keen to replicate EWR Finance regime system for other major agri commodities like paddy/ rice, oil seeds etc. as well.