Allied Bank Limited, one of Pakistan’s leading financial institutions, recently concluded a series of awareness activities to highlight the benefits of its Warehouse Facility, a groundbreaking solution to help agricultural enterprises overcome challenges in accessing conventional financing.
Allied Warehouse Facility enables millers, traders, farmers or agricultural enterprises to support working capital needs by offering their stock as security instead of land or property. This addresses a longstanding challenge faced by small and medium enterprises (SMEs) and farmers: the lack of acceptable collateral to secure financing.
The facility is designed to reduce finance costs and ease financial pressure on businesses. Commodities can be stored free of charge in secure, bank-managed warehouses with 24/7 surveillance and transparent record-keeping. Borrowers are exempt from Muqaddam charges, while the insurance cost of stored commodities is fully covered by the Bank.
To raise awareness and engage directly with potential customers, Allied Bank organized on-ground events in key grain markets (mandis) and strategically located warehouse sites, including Mandi Faizabad, Kamoke, Ghakkar, Toba Road Jhang, Athara Hazari Jhang, Pakpattan Road Sahiwal, and Muneerabad Multan.
More than 3,200 farmers, traders, and agri-entrepreneurs participated, gaining firsthand knowledge of Warehouse Facility through interactive Q&A sessions, walk-throughs, on-spot registrations, and networking opportunities.
The impact of this product is already visible in commodity markets. Agricultural Enterprises have gained smoother cash flows during peak trading seasons, helping them negotiate better prices and avoid distress sales.
“For the first time, I was able to secure financing without mortgaging my land or property. Using my stock as collateral means I can expand my trade without worrying about hidden costs. It has truly changed the way I do business,” one trader in Jhang shared.
By bridging financing gaps and supporting commodity trade, Allied Warehouse Facility is helping to strengthen Pakistan’s agriculture sector, an essential pillar of the national economy. With eight warehouses already operational and more in the pipeline, Allied Bank continues to expand its reach, reaffirming its role as a trusted partner in driving financial inclusion, supporting agriculture, and enabling sustainable business growth in Pakistan.