SECP Chairman directs PMEX to accelerate development of physically deliverable agricultural futures contracts

KARACHI
The Chairman, Securities and Exchange Commission of Pakistan (SECP), Dr. Kabir Ahmed Sidhu, has directed the management of Pakistan Mercantile Exchange (PMEX) to develop a practical roadmap for launching physically deliverable agricultural futures contracts.
He emphasized that the contracts should be supported by an integrated Electronic Warehouse Receipt (EWR) system with real-time connectivity between warehouses and PMEX.
The initiative is critical to modernizing Pakistan’s commodity markets, improving price discovery, and expanding access to transparent and efficient markets for farmers, traders, and processors.
Dr. Sidhu issued these directions while chairing a meeting of the PMEX Board of Directors and senior management during his visit at PMEX. The meeting was attended by SECP Commissioner (Securities Market Division) Mr. Ali Farid Khwaja, Executive Director Mr. Imran Inayat Butt, Director Mr. Muhammad Shamoun, and PMEX Managing Director & CEO Mr. Khurram Zafar.
The meeting focused on strengthening Pakistan’s regulated commodity futures market through technology, innovation, and market-based solutions.
Dr. Sidhu underscored that efficient commodity markets can play a transformative role in improving price discovery, reducing market inefficiencies, providing risk management tools to farmers and processors, and facilitating access to formal finance.
He stressed that modernizing commodity market infrastructure remains a key priority for SECP. He called for innovative products and wider market participation to unlock the sector’s full potential.
The PMEX management briefed the Chairman on ongoing initiatives to expand futures trading in key agricultural commodities.
The SECP Chairman also visited the headquarters of National Clearing Company of Pakistan Limited (NCCPL), where he met members of the Board of Directors. During the visit, NCCPL management briefed him on the company’s key functions, including clearing and settlement operations, risk management systems, and capital gains tax services.
The Chairman was also apprised of ongoing projects and future initiatives aimed at further strengthening Pakistan’s capital market infrastructure.
Dr. Sidhu emphasized the importance of robust post-trade institutions in ensuring market integrity, investor confidence, and operational resilience.
He reaffirmed SECP’s commitment to strengthening capital and commodity market institutions through technology-driven reforms, greater efficiency, and enhanced transparency to support sustainable economic growth.