The Securities and Exchange Commission of Pakistan (SECP) has proposed establishing a national agricultural spot market to connect farmers, warehouses, banks and buyers through a digital platform, aiming to improve crop prices, reduce post-harvest losses and facilitate access to financing.
Addressing the Pakistan Institute of Development Economics’ international conference, “Mission 100 Billion Dollars”, SECP Chairman Dr Kabir Ahmed Sidhu said the proposed system would introduce standardised quality grading, transparent bidding and electronic warehouse receipts to improve agricultural trading.
He said agriculture accounts for 23.44 per cent of Pakistan’s gross domestic product (GDP), with the country’s crops valued at approximately Rs8.8 trillion. Post-harvest losses, estimated at 20 to 40 per cent, represent a significant economic burden, with each percentage point of loss equivalent to around Rs88 billion.
Sidhu highlighted the shortage of storage facilities, noting that approved warehouses can accommodate approximately 326,000 metric tonnes, against annual production of nearly 55.7 million metric tonnes of storable agricultural commodities.
Under the proposed framework, farmers would be able to obtain bank loans against produce stored in approved warehouses, reducing pressure to sell immediately after harvest. The initiative would initially cover wheat, rice, maize, cotton and sugar, with digital transaction records and timely payments aimed at improving transparency.
He also called for investment in modern warehouses, cold storage and supply chains, alongside reforms to agricultural market regulations, licensing and commodity transportation procedures.
Separately, Sidhu said the SECP aimed to increase the number of stock market investors to 2.5 million through financial awareness campaigns, particularly targeting young people, and measures to simplify account opening.
He stressed that investor protection, stronger financial literacy and improved audit oversight were essential for building confidence in Pakistan’s capital markets. He also advocated an independent legal framework for supervising audit firms to strengthen corporate financial reporting and protect investors.
Corporate Intelligence Unit Formed to Detect Illegal Schemes Early