SBP allows Electronic Warehouse Receipt as collateral for bank financing.

KARACHI -- As a major move towards addressing the challenge of access to finance to farming community, State Bank of Pakistan has amended its Prudential Regulations of Agriculture Financing, SME Financing, and Corporate and Commercial Banking by allowing banks to accept Electronic Warehouse Receipts as collateral for lending against storage of agriculture produce and commodities.

Warehouse Receipt Financing (WHRF) is a mechanism whereby farmers, traders and processors may avail financing facility from banks while collateralizing their...