KARACHI: The first Electronic Warehouse Receipt (EWR) of yellow maize was traded at Pakistan Mercantile Exchange (PMEX), the country’s only multi-commodity futures exchange. This is a historical event for Pakistan as it marks the dawn of a new age where the agricultural sector of Pakistan can be documented and modernized electronically.
Under the guidance of the Securities and Exchange Commission (SECP), the Government of Pakistan has now completed this initiative from the formation of a Collateral Management Company (CMC), accreditation of warehouses, issuance of the EWR, financing against EWR and now the trading of EWR at PMEX.
The introduction of EWRs in Pakistan offers three options to the farmers: 1) safekeeping of commodities to avoid distress selling and post-harvest losses,2) using EWR as collateral for borrowing from financial institutions, and 3) trading of EWRs at the PMEX platform to efficiently sell the produce at a fair price.
Ejaz Ali Shah, Managing Director of PMEX, speaking on the occasion said, “We are delighted on the commencement of EWR trading at our platform.’’