Tag: SBP

KARACHI: Dr. Reza Baqir, Governor State Bank of Pakistan (SBP), launched Electronic Warehouse Receipt Financing (EWRF) for Maize Crop on Tuesday at an event in Habibabad, District Kasur.

During the event banks signed an agreement with a collateral management company to start operations under this newly developed system.

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Congratulating the banks on initiation of EWRF for maize crop, Dr. Baqir said that banks must now extend credit to the farmers to its full potential and make it easier for them to avail financing as the farmers would now be able to offer banks adequate collateral to avail loans.

He added that the system designed behind the EWRF is a win-win situation for all the three stakeholders including farmers, banks and the collateral companies as it offers a smooth and reliable process in terms of storage of the produce, receipts creation and provision of credit.

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He pointed out that last year only 59 percent of the credit needs of the farmers were met through banks, which must now increase substantially. He termed the farmers as the key beneficiary since they could now manage the risks emanating from price fluctuation in a better way. Farmers are often forced to sell their crops at lower prices during harvesting season due to unavailability of storage facilities and to meet their pressing cash requirements.

With the availability of EWRF, they will now be able to meet their financing needs from banks. EWRF has also created an incentive for establishing modern storage facilities since it will create the demand for such facilities by farmers.

Dr. Baqir highlighted that besides enhanced credit availability, EWRF will help to improve food security by minimizing post-harvest losses due to unavailability of modern storage spaces.

It will also help in better price discovery that will increase farmers’ profitability and guide in better farming decisions. He also apprised that SBP has established a high level Taskforce for EWRF, comprising key stakeholders, to develop synergies and address bottlenecks and challenges in availing EWRF. This Taskforce will be responsible to steer the entire action plan, monitor performance, and provide strategic direction to boost EWRF in the country.

At the launch event, key stakeholders including banks also shared their experiences of implementing the emerging EWRF regime, followed by a documentary video focused on creating awareness on EWRF. President & CEO Habib Bank Limited – the pioneer bank in launching EWR based financing in Pakistan, Mr. Muhammad Aurangzeb, said that launch of this initiative has created a great incentive for banks to extend financing to the farmers. It is the right step towards facilitating the farming community and will help in reaping the massive potential in the agricultural sector to contribute towards the growth of the country. Assuring continued support of Bank of Punjab (BOP) in facilitating farmers, its President & CEO, Mr. Zafar Masud opined that EWRF would not only assist the farmers in their economic well-being but also significantly help avoid post-harvest losses of various crops.

The launch of EWRF is in line with SBP’s efforts to ensure availability of adequate credit for agriculture purposes. In this regard SBP has recently increased credit limits for farmers to meet their input requirements. Earlier, SBP set agriculture credit target for banks to an all-time high of Rs 1.7 trillion for FY22.

The event was attended by various dignitaries from Federal and Provincial Governments, CEO Naymat Collateral Management Company Ltd., Presidents/CEOs of banks, warehouse operators, and farming community, among others.

KARACHI: The State Bank of Pakistan (SBP) is launching Electronic Warehouse Receipt Financing (EWRF) on Tuesday February 22, 2022 for Maize Crop.

The financing scheme will be launched at an event in Tehsil Chunian, District Kasur, according to a SBP statement issued on Monday.

READ MORE: SBP expands export finance scheme to improve inflows

At the event banks will be signing their System Usage Agreements with Naymat Collateral Management Company Ltd. (NCMCL) to commence operations under this newly developed system.

This mechanism will not only provide farmers with an adequate facility to store their produce, but also address their liquidity requirement as these receipts will be used as a collateral to avail financing from banks.

The warehouse receipts will be issued by approved collateral management companies in arrangement with their accredited storage facility operators.

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The value of stored harvest will be assessed and marked on the electronically issued warehouse receipts, which can then be used to avail financing from banks.

Through this initiative, SBP aims to achieve multiple objectives including; enhanced availability of formal credit to farmers who otherwise do not have acceptable collateral to secure bank financing; minimize post-harvest losses through a network of accredited warehouses where standardized agricultural produce can be stored; and ensure better price discovery to increase farmers’ profitability and guide them in making better farming decisions.

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The system has been developed through collaborative efforts of various stakeholders including the State Bank of Pakistan, Securities & Exchange Commission of Pakistan, Federal and Provincial Governments, and banks, among others.

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KARACHI: The State Bank of Pakistan (SBP) on Friday issued Rs.70 Commemorative Coin to Mark 70^th Anniversary of Diplomatic Relations between Germany and Pakistan.

A ceremony was held at the SBP office in Islamabad to mark the issuance of a special 70 Rupee Commemorative Coin on the occasion of the 70^th anniversary of establishment of diplomatic relations between Germany and Pakistan.

It may be recalled that the diplomatic relationship between Germany and Pakistan was established on October 15, 1951.

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The Foreign Secretary of Pakistan, Sohail Mahmood graced the occasion as Chief Guest, which was also attended by the Ambassador of Germany Bernhard Schlagheck, as the Guest of Honor. The ceremony was hosted by Deputy Governor SBP Dr. Murtaza Syed.

In his address, Dr. Syed welcomed both the Foreign Secretary Sohail Mahmood and the Ambassador of Germany, Bernhard Schlagheck and paid tribute to the longstanding friendly relations between the two countries.

He highlighted the strong financial and banking connections, which have helped to promote bilateral trade, remittances and investment. Dr. Murtaza also shed light on the exemplary cooperation between the two central banks of Pakistan and Germany, and said that SBP has benefitted immensely from the training and development programs organized by the Bundesbank.

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In his address, Dr. Syed paid tribute to the German-Pakistani nun Dr. Ruth Pfau for her untiring and selfless efforts to fight leprosy in Pakistan. He recalled that Pakistan had also issued a commemorative coin to honor her services in 2018.

The ambassador of Germany His Excellency Bernhard Schlagheck expressed his appreciation to the Government of Pakistan and the SBP for the ceremony. While noting the design features of the coin, he remarked on the historic importance of the buildings depicted, the Brandenburg Gate and the Minar-e-Pakistan.

He noted that Germany and Pakistan have a long history of development cooperation, reflected most recently by the ongoing visit of the Deputy Development Minster of Germany. He also highlighted the history of close interaction between the two countries at the highest levels, alluding to the planned visits of the Prime Minister of Pakistan to Germany and the German foreign minister to Pakistan.

He emphasized that the two countries have strong relations in the areas of finance, culture, and education. The ambassador also extoled the contributions of the Pakistani diaspora in Germany, noting that they were playing an important role in promoting social prosperity and economic development in Germany.

Foreign Secretary, Sohail Mahmood in his address discussed the strong relations that Germany and Pakistan have established over many decades.

He highlighted the cooperation between Pakistan and Germany in diverse fields including trade and investment, energy, environment, education, science and technology, and defense & security. He noted that Germany is the largest trading partner of Pakistan within the European Union and appreciated the investment made by German institutions in Pakistan.

On a human level, he also highlighted the significant influence of Germany in the intellectual evolution of Allama Iqbal.

The commemorative coin has a diameter of 30 mm and weighs 13 grams, with milled serrations on the edge. The metal composition of the coin is Cupro-Nickel with 75 per cent Copper and 25 per cent Nickel.