Dr. Abdul Hafeez Shaikh welcomes PAC efforts in launching the warehouse receipts financing regime, promises full support

Mr. Arif Nadeem and Mr. Kazim Saeed shared the latest progress, led by Pakistan Agricultural Coalition, in launching the warehouse receipts regime in Pakistan to Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance, Revenue and Economic Affairs in Islamabad.

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The meeting was also attended by Chairman, Securities and Exchange Commission of Pakistan (SECP) Governor, State Bank of Pakistan, Acting President, Zarai Taraqiati Bank Limited (ZTBL), Secretary, Agriculture, Punjab and Jahangir Khan Tareen. Dr. Shaikh has directed SECP to notify the final draft of proposed Collateral Management Regulations within the next few weeks to facilitate the launch of warehouse receipts financing regime. Once launched, the warehouse receipts financing regime will help reduce high post-harvest losses (~20%), preserve the quality of agri-commodities for export, and increase farmers’ access to formal credit. For more details, read the full story here.

President Arif Alvi invites PAC to present on ongoing PAC projects

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Mr. Arif Nadeem. Mr. Kazim Saeed, Mr. Raashid Anwar and Mr. Naushad Zuberi from PAC along with some of Pakistan’s leading business leaders were invited by His Excellency, President Arif Alvi at President House to update his Excellency on ongoing PAC projects.
President Alvi was greatly impressed to learn about the pioneering work being pursued by Pakistan Agricultural Coalition such as setting up the BBA Agribusiness degree program, the successful incubation of SANIFA, a top-class cotton seed company, the on-going REAP-PAC program of doubling Pakistan’s rice exports, and leading progress on Naymat collateral to promote warehouse-receipts based agri-financing in Pakistan.
After learning about success of BBA agribusiness degree program in which the first batch has already graduated with job offers from Pakistan’s leading ago processors. President Arif Alvi, has directed HEC to replicate this program, with PAC’s help, at other suitable universities in Pakistan.

The Minister of Agriculture, Supply and Prices of Sindh invites REAP and PAC to present their program of doubling Pakistan’s rice exports

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Mr. Safder Mehkri and senior members of Rice Exporters Association of Pakistan (REAP) along with Mr. Syed Hamid Raza and Mr. Zulfiqar Ali from PAC presented the REAP-PAC program of doubling rice exports by 2023 to the Honorable Minister of Agriculture, Supply and Prices, Sindh.
The REAP-PAC program consists of key on-farm interventions such as provision of better seed, mechanical nursery sowing and transplantation and mechanical harvesting as well as setting up of quality drying and storage facilities, to increase rice productivity and quality.
Mr. Mehkri shared that Garibsons Consortium led by Garibsons Pvt. Ltd., Conwill Pakistan, RB International and INB Rice along with Jaffer Agro Services Pvt. Ltd., has already imported the required farm machinery and hired service providers from Punjab to conduct pilot projects in Districts Thatta and Badin.
Mr. Mehkri also highlighted the crucial support required from the Government of Sindh in implementing this program over 1.7 million acres of rice cultivation area in Sindh.
Mr. Rahu acknowledged the importance of the REAP-PAC program in improving farmer profitability, reducing rural poverty and increasing national rice exports and pledged full support to the program.

Farm machinery demonstrations held for rice farmers in Thatta and Badin, Sindh

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Garibsons Consortium organized two demonstrations, attended by over 400 farmers in Gharo (Thatta) and Golarchi (Badin), to demonstrate their newly imported rice nursery sowing and transplanting machines.
Garibsons Consortium led by Garibsons Pvt. Ltd., Conwill Pakistan, RB International and INB along with Jaffer Agro Services Pvt. Ltd., has procured the required machinery and trained personnel to provide mechanical nursery sowing and transplanting services to rice farmers for the first time in Sindh during the rice season 2019.
During the demonstration, the farmers were greatly impressed by the speed of transplanter machines, which can transplant one acre of rice seedlings in less than hour compared to by-hand transplantation, which requires 10-15 men about 4 hours to transplant one acre. The plant population during mechanical transplantation is also higher at about 100,000 plants/acre compared to 45,000 plants/acre achieved during manual transplantation, which translates to a yield increase of about 25-30% for mechanical sowing and transplantation.
After successful demonstration, all farmers shared that farm labor was not only hard to find during manual transplantation and harvesting periods but also less efficiency so they look forward to using these machines to increase their productivity and profitability.

Mr. Zuberi receiving Pakistan Center for Philanthropy Certification for Pakistan Agricultural Coalition

First loans to farmers with crop as collateral disbursed

First loans to farmers with crop as collateral disbursed

KARACHI: The first-ever loans by a leading Pakistani bank to farmers with crop as collateral have been disbursed in the Muridke area of district Sheikhupura.
The loans were disbursed after an effort by the non-profit Pakistan Agricultural Coalition.
The bank disbursed loans worth Rs3.7 million against 185 tonnes of wheat to two farmers.
The wheat was placed in a warehouse operated by a private logistics company after testing.
The stocks are under pledge to HBL at Pakistan Mercantile Exchange. Mahmood Moulvi, Chairman M.M Flour Mills, has committed to purchase the stock.
PAC Chief Executive Arif Nadeem said that this is the birth of a new era for Pakistan's farmers as the warehouse receipts business model has now been adapted to the Pakistani environment.
The system can not only improve financial inclusion of farmers but also farmers' market access, protection of crop quality, price stability, and ultimately export competitiveness and food security.
Nadeem noted that this effort is a pilot initiative for an eco-system based on Collateral Management Regulations 2017, championed by the Securities and Exchange Commission of Pakistan (SECP) for which the State Bank of Pakistan is developing a framework.
The PAC chief executive acknowledged SECP's commitment to the development of the commodities market and the excellent support by the SECP in terms of guidance and help in developing the sector.