BankIslami has become the first Islamic Bank to have effectively structured and dispensed Pakistan’s first Shariah-compliant Electronic Warehouse Receipt (EWHR) funding declared under the repository information system operated by Naymat Collateral Management Company Limited.
Securities & Exchange Commission of Pakistan (SECP) declared Collateral Management Company (CMC) guidelines in the year 2019. The objective is to create an enabling environment and ascribe warehouses for the storage of various commodities, which would facilitate aggregators and farmers to evade distress sales during the harvesting period.
Naymat Collateral Management Company Limited (NCMCL) is the first registered company under the CMC guidelines, which is authorized to ascribe warehouse to receive and store commodities and issue Electronic Warehouse Receipts (EWHR) through a digital repository system. This would enable to duly connect all relevant investors, which comprises of the Warehouse Operator, Bank, CMC, and the depositor. Banks can gain access to the system to receive EWHR for financing to their clients, as per their credit policy, in contrast to stored commodities.
In consideration a ceremony was organised at BankIslami Head Office, Karachi to commemorate this distinctive Shariah compliant EWR financing transaction. The ceremony was attended by President and CEO BankIslami, Syed Amir Ali and Shakaib Arif CEO of Naymat Collateral Management Company Limited (NCMCL) alongside the other senior officials from both the entities.
Syed Amir Ali, President BankIslami applauded the NCMCL team for holding this valuable initiative to reinforce the extremely vital link of the agriculture value chain of Pakistan and creating EWHR financing an accomplishment.
Ali further underlined that agriculture is the core foundation for the Pakistan’s economy offering food safety measures. Therefore, any investment in the agriculture sector will only aid the farmers to enrich the yield of their crop, as well assist Pakistan to aim at generating foreign exchange reserve with surplus exports.
He added that the BankIslami offers excellent turn around times, notably in terms of Shariah Complaint EWR Financing and is acutely concentrating on the agriculture sector, to steadily grow its Agri portfolio by assisting farmers through its 340 plus divisions in over 123 cities nationwide across Pakistan.
BankIslami Pakistan Limited aims to be recognized as the leading Authentic Islamic bank, headquartered in Karachi, Sind. The Islamic bank was founded in the year 2006. BankIslami is the second largest Islamic Bank of Pakistan and the 11th largest banking system in the country.
The Shariah Board of BankIslami comprises of prominent scholars such as, Mufti Muhammad Hussain, Mufti Irshad Ahmad Aijaz and Mufti Javed Ahmad. The Islamic Bank possesses a Long-Term Credit Rating of A and Short-Term Credit Rating of A1.