PMEX and IFC partner to strengthen agricultural commodity futures markets

KARACHI: Pakistan Mercantile Exchange Limited (PMEX) and the International Finance Corporation (IFC) have entered into a Cooperation Agreement to strengthen Pakistan’s agricultural commodities futures market and support the implementation of the Electronic Warehouse Receipt (EWR) regime.

The partnership aims to enhance transparency, efficiency, and private sector participation in commodity markets. By strengthening price discovery and risk management tools, it will help farmers, traders, processors, and investors make informed business decisions.

The initiative is also expected to support investment in warehousing infrastructure, reduce post-harvest losses, and contribute to food security in Pakistan. Maize, rice, cotton, and wheat have been identified as priority commodities for futures trading on the PMEX platform.

Under the agreement, IFC will support a review of the existing regulatory framework governing the storage, transportation, and trading of agricultural commodities and recommend reforms to strengthen the enabling environment. IFC will also facilitate stakeholder engagement, support the development of futures contracts, and lead awareness and capacity-building initiatives to promote futures trading and the wider adoption of electronic warehouse receipts.

“This partnership with IFC marks an important step towards modernizing Pakistan’s agricultural markets. Efficient commodity futures markets and electronic warehouse receipts can improve price transparency, strengthen risk management, encourage investment in storage infrastructure, and provide farmers, traders, processors, and investors with better market access. Together, we aim to create a stronger and more resilient agricultural marketing ecosystem for Pakistan”, said Khurram Zafar, Chief Executive Officer of PMEX.

Copyright Business Recorder, 2026