PMEX, IFC partner to transform Agri Markets

June 16, 2026 (MLN): Pakistan Mercantile Exchange Limited (PMEX) and the International Finance Corporation have signed a cooperation agreement aimed at accelerating the development of Pakistan’s agricultural commodities futures market and promoting the implementation of the Electronic Warehouse Receipt (EWR) system.

The collaboration seeks to modernize agricultural commodity trading by improving market transparency, strengthening price discovery mechanisms, and expanding the use of risk management tools across the sector.

The initiative is expected to benefit farmers, traders, processors, investors, and other market participants by enabling more informed decision-making and improving access to competitive markets.

As part of the agreement, maize, rice, cotton, and wheat have been identified as key commodities for the expansion of futures trading on the PMEX platform, according to the press release.

The partners believe that a stronger futures market, combined with a functional EWR framework, will encourage greater private-sector participation, attract investment in warehousing infrastructure, and help reduce post-harvest losses, ultimately contributing to enhanced food security.

Under the partnership, IFC will conduct a comprehensive assessment of Pakistan’s existing regulatory environment governing the storage, transportation, and trading of agricultural commodities.

Based on its findings, the organization will propose reforms aimed at creating a more supportive ecosystem for commodity market development.

IFC will also work closely with industry stakeholders, assist in designing new futures contracts, and lead awareness campaigns and capacity-building programs to encourage wider adoption of futures trading and electronic warehouse receipts.

Speaking on the occasion, Khurram Zafar said the agreement represents a significant milestone in the modernization of Pakistan’s agricultural markets.

He noted that efficient futures markets and electronic warehouse receipt systems can improve market transparency, strengthen risk management practices, encourage investment in storage facilities, and provide greater market access to agricultural stakeholders across the value chain.

The initiative is aligned with the World Bank Group's Agri Connect Global program, which supports efforts to strengthen agricultural value chains, promote climate-resilient farming practices, and improve market connectivity for farmers.

In Pakistan, the program focuses on advancing modern storage solutions, enhancing price transparency, and facilitating stronger links between producers and markets.

Commenting on the partnership, Simon Andrews emphasized that modern and efficient commodity markets are critical to unlocking the country’s agricultural potential.

He said that improved price discovery, expanded warehousing capacity, and greater use of electronic warehouse receipts can help farmers secure better prices, reduce losses, and improve access to financing, thereby supporting the growth of a more resilient and market-oriented agricultural sector.

Meanwhile, Ahmed Umair highlighted the government’s ongoing efforts to strengthen the agriculture sector. He referred to the Agriculture Innovation and Growth Program (AIGP), which aims to enhance farmers’ capacities, and noted that work is underway on broader regulatory reforms.

He added that the government is also finalizing a National Wheat Policy, which is expected to play a transformative role in the development of Pakistan’s agricultural economy.

The signing ceremony was attended by PMEX board members, senior officials from the Ministry of National Food Security and Research, representatives of the Securities and Exchange Commission of Pakistan, and delegates from the World Bank Group, reflecting broad institutional support for the initiative and its objectives.

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