Pakistan loses an estimated 20 to 40 percent of its crops after harvest, potentially costing the country up to Rs. 3.52 trillion.
Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu said at the “Mission $100 Billion” conference that agriculture contributes 23.44 percent to Pakistan’s gross domestic product, while the total value of the country’s crops stands at approximately Rs. 8.8 trillion.
Each percentage point of post-harvest losses represents around Rs. 88 billion in lost value. A 40 percent loss equates to Rs. 3.5 trillion.
Pakistan has only 326,000 metric tons of approved warehouse capacity, compared with an estimated 55.7 million metric tons of storable dry agricultural commodities produced in the country, Sidhu said.
He called for reforms to agricultural markets, including modern warehousing, cold storage and transportation systems, to reduce losses and attract investment. He said the SECP was working to promote a modern warehousing system based on electronic warehouse receipts.
Under the proposed framework, a national agricultural spot market would connect agricultural markets to online trading platforms, improving storage, bank financing and transparent trade. Provincial authorities would retain oversight of agricultural markets, while the SECP would provide technical support.
Electronic warehouse receipts would allow farmers to obtain bank loans against stored crops instead of being forced to sell their produce immediately at low prices. Sidhu said the proposed system could also improve access to financing and help farmers secure better prices.
The spot-trading market would gradually include wheat, rice, corn, cotton and sugar. Standardized quality, weighing and grading rules could help improve price discovery, while the registration of commission agents and traders and digital transaction records could strengthen protections for farmers and buyers.
Sidhu also emphasized the need for reliable payment systems to ensure farmers receive payments on time. He called for modernization of agricultural market rules, licensing, fees and systems governing the movement of commodities.
He said improved storage infrastructure could reduce post-harvest losses and help Pakistani agricultural products reach export markets more effectively.
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