SECP directs PMEX to modernize Agri trading

June 18, 2026 (MLN): The Chairman of the Securities and Exchange Commission of Pakistan (SECP), Dr. Kabir Ahmed Sidhu, has instructed the Pakistan Mercantile Exchange (PMEX) to prepare a comprehensive implementation plan for introducing physically settled agricultural futures contracts, aimed at strengthening Pakistan’s commodity market ecosystem.

During a visit to PMEX, Dr. Sidhu stressed that the proposed contracts should be linked with a robust Electronic Warehouse Receipt (EWR) framework featuring real-time integration between registered warehouses and the exchange, according to the press release issued.

He noted that such a mechanism would enhance market transparency, improve price discovery, and provide greater market access to farmers, traders, and processors.

The directives were issued during a meeting with PMEX’s Board of Directors and senior management. The session was attended by SECP Commissioner (Securities Market Division) Ali Farid Khwaja, Executive Director Imran Inayat Butt, Director Muhammad Shamoun, and PMEX Managing Director and CEO Khurram Zafar.

The discussion centered on measures to strengthen Pakistan’s regulated commodity futures market through the adoption of technology, innovation, and market-driven solutions.

Dr. Sidhu highlighted the significant role efficient commodity markets can play in reducing pricing distortions, improving market efficiency, and offering effective risk management tools for agricultural stakeholders.

He also noted that a modern commodity market infrastructure can facilitate access to formal financing and support broader economic development.

Reaffirming SECP’s focus on upgrading the country’s commodity trading framework, the Chairman encouraged the development of innovative products and initiatives that could attract broader participation and unlock new growth opportunities within the sector.

PMEX management, meanwhile, briefed the SECP chief on ongoing efforts to broaden futures trading activity in major agricultural commodities.

Separately, Dr. Sidhu visited the National Clearing Company of Pakistan Limited (NCCPL), where he met the company’s Board of Directors and reviewed its operational framework. NCCPL officials provided an overview of the institution’s core functions, including clearing and settlement services, risk management mechanisms, and capital gains tax administration, along with updates on current and upcoming projects.

During the visit, the SECP Chairman emphasized the critical role of strong post-trade institutions in maintaining market stability, safeguarding investor confidence, and ensuring operational resilience.

He reiterated the regulator’s commitment to advancing capital and commodity market infrastructure through technology-led reforms, improved efficiency, and greater transparency to support sustainable economic growth.

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