Pakistan eyes modern agricultural markets to cut Rs88bn crop losses

October 15, 2026 (MLN): Pakistan is working to promote a modern warehousing system based on electronic warehouse receipts and has proposed establishing a national agricultural spot market to facilitate secure storage, bank financing and transparent trade, Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu said.

Addressing an international conference organized by the Pakistan Institute of Development Economics (PIDE) under the theme “Mission $100 Billion,” Dr. Kabir Ahmed Sidhu said agricultural market reforms are essential for the growth of the overall economy.

Agriculture contributes 23.44% to Pakistan’s Gross Domestic Product (GDP), while the country’s total crop value stands at approximately Rs8,800bn. Post-harvest crop losses are estimated at 20% to 40%, with every 1% loss representing approximately Rs88bn.

Pakistan has a total approved warehouse capacity of only 326,000 metric tons, compared with approximately 55.7 million metric tons of storable dry agricultural commodities produced in the country.

Under the proposed system, agricultural markets will be connected to an online trading platform, while provincial governments will retain oversight of agricultural markets and the SECP will provide technical facilitation.

Dr. Kabir Ahmed Sidhu said modern warehouses, cold storage facilities and logistics systems could increase investment in agriculture. Secure storage and financing would also help farmers avoid being forced to sell their produce immediately after harvest at lower prices.

Through electronic warehouse receipts, farmers would be able to obtain bank loans against their stored crops. Wheat, rice, maize, cotton and sugar would be gradually included in the spot trading market.

He added that uniform standards for quality, weight and grading could help farmers secure better prices, while the registration of commission agents and traders and digital transaction records could improve protection for farmers and buyers.

Dr. Kabir Ahmed Sidhu also stressed the need for a reliable system to ensure timely payments to farmers and called for the modernization of agricultural market regulations, licensing, fees and systems governing the movement of commodities.

He said modern storage facilities could reduce crop losses and improve access to export markets.

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