KARACHI: The Chairman of the Securities and Exchange Commission of Pakistan (SECP), Dr. Kabir Ahmed Sidhu, has instructed the Pakistan Mercantile Exchange (PMEX) to accelerate the development of physically deliverable agricultural futures contracts. This move aims to modernize Pakistan’s commodity markets, improve price discovery, and enhance market access for farmers, traders, and processors.

According to Securities and Exchange Commission of Pakistan, Dr. Sidhu emphasized the importance of integrating an Electronic Warehouse Receipt (EWR) system with real-time connectivity between warehouses and PMEX. These directions were given during a meeting with the PMEX Board of Directors and senior management. The meeting, attended by SECP Commissioner Ali Farid Khwaja, Executive Director Imran Inayat Butt, Director Muhammad Shamoun, and PMEX Managing Director & CEO Khurram Zafar, focused on strengthening the regulated commodity futures market through technology and innovation.

Dr. Sidhu highlighted the transformative role efficient commodity markets can play in improving price discovery and reducing market inefficiencies. He called for innovative products and broader market participation to unlock the sector’s potential. The PMEX management briefed the Chairman on ongoing initiatives to expand futures trading in key agricultural commodities.

In addition, Dr. Sidhu visited the National Clearing Company of Pakistan Limited (NCCPL) headquarters, where he discussed the company’s operations, including clearing and settlement, risk management, and capital gains tax services. He emphasized the importance of robust post-trade institutions for market integrity and reaffirmed SECP’s commitment to strengthening market institutions through technology-driven reforms.