Warehouse receipt financing in Pakistan
This paper on warehouse receipt (WHR) financing in Pakistan, published by Karandaaz Pakistan with financial support from the United Kingdom’s Department for International Development and the Bill and Melinda Gates Foundation, is an assessment of the current status of WHR financing in Pakistan, realized through in-depth interviews with current and potential users, as well as suppliers and regulators of the scheme. An analysis of the price trends of major agricultural commodities over the last five years reveals that WHR financing could be a viable source of credit for wheat, rice, cotton and maize farmers in Pakistan. Yet, the study finds that the development of WHR financing in Pakistan is still in its infancy. Although concrete measures have been taken towards the implementation of WHR financing, there are several gaps in the regulatory, institutional and infrastructural frameworks that are required for the effective operation of the model in Pakistan. The study draws recommendations in order for WHR financing to take for an upsurge in the country.