A new partnership in Pakistan aims to bridge the gap between smallholder farmers and formal credit by using stored crops as digital collateral. Karandaaz Pakistan and Kissan Gudam, a Hajisons Group venture, announced the collaboration on Sunday, combining storage infrastructure with financial technology to reshape how rural agriculture is financed. Main Developments The initiative will deploy Electronic Warehouse Receipt (EWR)-based financing, allowing farmers to use stored produce as collateral for loans. Kissan Gudam's hermetic storage cocoons, supplied by US-based GrainPro, are portable and can be installed near farming communities, reducing transportation costs and post-harvest losses. Under the system, farmers can store their harvest, obtain credit against it, and connect with markets through a digital value chain. Kissan Gudam's digital wallet will link to warehouse infrastructure, enabling verification of stored produce and potentially disbursing financing in minutes rather than weeks. Read also: Pakistan Clears Rs10bn Old Export Refunds to Ease Liquidity Karandaaz CEO Waqas ul Hasan emphasized that credit alone cannot address Pakistan's agricultural needs, highlighting the importance of combining storage, market linkages, and finance. Kissan Gudam CEO Farhan Tahir added that the partnership would support financial security and climate-resilient storage for farmers. Background Smallholder farmers in Pakistan have long faced challenges accessing formal credit due to lack of collateral and remote locations. Traditional warehouse facilities are often distant, forcing farmers to sell immediately after harvest at lower prices. The EWR model has been explored globally but has seen limited adoption in Pakistan. Kissan Gudam's hermetic storage technology, developed by GrainPro, preserves crop quality and quantity while enabling decentralized storage. The partnership expands on this model by integrating digital financial services, a move that aligns with broader efforts to modernize Pakistan's agricultural financing landscape. Why It Matters Post-harvest losses in Pakistan are significant, and limited access to credit hampers farmers' ability to invest in better inputs or hold produce for better market prices. By enabling warehouse receipt financing, the initiative could reduce losses, improve market transparency, and bring more farmers into the formal financial system. The use of US technology also underscores bilateral cooperation in agriculture, as noted by Tom A. Peter, Economic Officer at the US Embassy in Islamabad. Scaling this model could transform rural livelihoods and strengthen food security in Pakistan. What's Next The partnership aims to expand Kissan Gudam's post-harvest storage network across rural Pakistan, with a focus on integrating digital financing into the agricultural value chain. Further details on rollout timelines and geographic priorities were not disclosed in the statement.