What will PMEX’s NCMCL deal mean for agriculture?

November 21, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has approved Pakistan Mercantile Exchange Limited’s (PMEX) proposal to acquire a majority stake in Naymat Collateral Management Company Limited (NCMCL).

This pivotal move is expected to accelerate the growth of Pakistan’s Electronic Warehouse Receipt (EWR) ecosystem and strengthen the country’s agricultural market infrastructure, according to the press release issued today. 

The integration of PMEX and NCMCL aligns with the SECP’s strategic vision of linking the commodity futures market more closely with the real economy.

It complements the Commission’s ongoing efforts to modernize agricultural value chains through technology-driven solutions and collaboration with provincial governments.

Notably, the Government of Punjab’s successful adoption of the EWR system for wheat storage last year demonstrated the model’s effectiveness, and this decision positions the ecosystem for wider adoption and greater long-term impact.

The Electronic Warehouse Receipt (EWR) system is a secure, digital platform that enables farmers and warehouse operators to record stored agricultural commodities in a verifiable and nationally recognized registry.

By accurately documenting the quantity and quality of stored crops, the system allows farmers and businesses to use these receipts as collateral to access financing, sell their produce, or participate in commodity trading.

As the central institution managing the EWR framework, NCMCL accredits warehouses, maintains the registry of electronic receipts, and ensures trust and transparency across the process.

Without NCMCL’s robust operations, the system cannot function reliably, leaving farmers struggling to secure financing or market their crops efficiently.

With NCMCL as the backbone of the EWR ecosystem, PMEX’s leadership, institutional capacity, and governance expertise will provide the strategic direction and operational strength needed to expand the network of accredited warehouses, enhance trust in stored commodities, and improve access to finance for farmers and agribusinesses.

This strengthened foundation will also pave the way for the introduction of deliverable agricultural futures contracts, bringing Pakistan’s commodity markets closer to global best practices and deepening market participation.

The SECP extends its appreciation and congratulations to the PMEX Board and management for their forward-looking leadership and commitment to strengthening Pakistan’s commodity market infrastructure.

This milestone represents a significant step toward building a more transparent, efficient, and resilient agricultural marketplace for the country.

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