Allied Bank Limited (ABL) has completed a series of awareness activities to promote its warehouse facility, a financing solution aimed at helping agricultural businesses overcome barriers in accessing credit. The facility allows farmers, millers, traders, and agri-enterprises to obtain working capital against their stock rather than land or property, addressing a major challenge for small and medium enterprises in the sector.
The facility provides several benefits to borrowers, including reduced finance costs, smoother cash flows, and improved business operations. Commodities can be stored free of charge in secure, bank-managed warehouses with 24/7 surveillance and transparent record-keeping. Borrowers are also exempt from Muqaddam charges, while the bank fully covers the insurance cost for stored commodities.
Read More: SC reprimands ABL president for callous dealing of pensioners
To raise awareness, ABL conducted on-ground engagement events at major grain markets and warehouse sites, including Mandi Faizabad, Kamoke, Ghakkar, Toba Road Jhang, Athara Hazari Jhang, Pakpattan Road Sahiwal, and Muneerabad Multan. Over 3,200 farmers, traders, and agri-entrepreneurs attended, taking part in walk-throughs, interactive sessions, on-the-spot enrollment, and discussions with bank representatives.
The impact of the warehouse facility is already evident, with agricultural enterprises reporting better cash flow during peak trading seasons, allowing them to negotiate favorable market rates and avoid distress selling. A trader in Jhang said, “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.”
Read More: ABL Funds conferred with Cambridge Excellence Award
Currently, ABL operates eight warehouses, with plans to expand further. The bank said the initiative reinforces its commitment to supporting agriculture, improving access to finance, and enabling sustainable growth in one of Pakistan’s most critical economic sectors.