The Securities and Exchange Commission of Pakistan (SECP) Chairman, Dr. Kabir Ahmed Sidhu, has proposed establishing a digital national agricultural spot market to connect farmers, warehouses, banks and buyers through standardised grading, transparent bidding and electronic warehouse receipts.
The proposal was presented at the Pakistan Institute of Development Economics (PIDE) conference titled “Mission 100 Billion Dollars”. The initiative aims to improve agricultural marketing, strengthen financing opportunities for farmers and promote greater transparency across Pakistan’s agricultural supply chain.
Under the proposed model, farmers could use stored agricultural produce as collateral to obtain bank financing instead of selling their crops immediately at potentially unfavourable prices. The system could help farmers avoid distress sales, secure better market prices and improve their bargaining power.
The digital marketplace could also help reduce post-harvest losses, strengthen accountability and improve the quality of agricultural produce supplied to domestic consumers and international markets. Standardised grading and reliable electronic records would support greater transparency in transactions and help build confidence among farmers, financial institutions and buyers.
Addressing Pakistan’s Agricultural Storage Gap
The proposal comes amid a significant gap between Pakistan’s agricultural production and its approved storage capacity. According to the figures presented, agriculture contributes 23.44% to Pakistan’s gross domestic product (GDP), while crops are valued at approximately Rs 8.8 trillion.
However, approved storage capacity stands at around 326,000 metric tonnes, compared with an estimated 55.7 million tonnes of dry agricultural production. This disparity highlights the need for modern storage facilities, improved supply-chain management and reliable digital documentation.
The proposed system could initially focus on major crops, including wheat, rice, maize, cotton and sugar, creating opportunities to improve storage, financing and marketing arrangements across important agricultural sectors.
Electronic warehouse receipts could play a particularly important role by providing verifiable records of stored commodities that farmers may use to support financing applications with banks and other eligible financial institutions.
Expanding Pakistan’s Capital Market Participation
Dr. Sidhu also highlighted the importance of broadening participation in Pakistan’s capital market, setting a target of reaching 2.5 million investors in the Pakistan Stock Exchange (PSX).
He emphasised the role of financial literacy initiatives and simpler account-opening procedures in encouraging more people to participate in the formal investment market.
In addition, the SECP Chairman called for an independent legal framework for audit oversight to strengthen financial reporting standards and improve confidence in Pakistan’s capital markets.
The proposed agricultural market, wider investor participation and stronger audit oversight reflect broader efforts to improve transparency, financial inclusion and institutional confidence in Pakistan’s economy.
If effectively implemented, a digital agricultural marketplace could help farmers unlock the financial value of stored produce while supporting more efficient agricultural trade. Its success, however, would depend on adequate storage infrastructure, credible grading standards, reliable digital records, financing arrangements and effective regulatory oversight.
Disclaimer: This report is based on the information provided regarding the SECP Chairman’s remarks at the PIDE “Mission 100 Billion Dollars” conference. Figures, proposals and policy objectives have not been independently verified by the editorial team. The proposed agricultural spot market should not be interpreted as an already operational system or a guarantee of financing or higher crop prices.
