Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu has instructed the Pakistan Mercantile Exchange (PMEX) to develop a practical framework for introducing physically deliverable agricultural futures contracts.
He emphasized that the proposed system should be supported by an integrated Electronic Warehouse Receipt (EWR) mechanism, enabling real-time coordination between registered warehouses and the exchange platform.
According to him, such a structure would improve transparency in commodity pricing and strengthen market access for farmers, traders, and processors.
Unlike cash-settled contracts, physically deliverable futures require actual delivery of the underlying agricultural commodity at contract maturity, a system commonly used in developed commodity markets to enhance price discovery and reduce inefficiencies in supply chains.
During the meeting, PMEX officials briefed the SECP chairman on ongoing efforts to expand futures trading in key agricultural commodities.
Dr. Sidhu stated that upgrading commodity market infrastructure remains a key regulatory priority and stressed the need for innovative products and wider participation to unlock the sector’s potential.
Separately, he visited the National Clearing Company of Pakistan Limited (NCCPL), where he was briefed on clearing and settlement systems, risk management frameworks, and planned improvements aimed at strengthening capital market infrastructure.
