The Securities and Exchange Commission of Pakistan (SECP) has approved Pakistan Mercantile Exchange Limited’s (PMEX) acquisition of a majority stake in Naymat Collateral Management Company Limited (NCMCL). The move is set to strengthen the country’s agricultural market infrastructure and accelerate growth in Pakistan’s Electronic Warehouse Receipt (EWR) ecosystem.
This strategic integration aligns with SECP’s vision of connecting commodity futures markets more closely with the real economy. It also supports the regulator’s ongoing efforts to modernize agricultural value chains through technology and collaboration with provincial authorities. Last year, the Punjab government successfully implemented the EWR system for wheat storage, highlighting the platform’s effectiveness and paving the way for broader adoption.
The EWR system is a digital, secure platform that allows farmers and warehouse operators to record stored crops in a nationally recognized registry. It verifies both the quantity and quality of commodities, enabling farmers and businesses to use receipts as collateral, access financing, sell produce, or participate in commodity trading.
NCMCL plays a critical role by accrediting warehouses, maintaining the registry, and ensuring trust and transparency across the ecosystem. Without NCMCL, the system cannot operate efficiently, leaving farmers with limited financing options or market access.
With NCMCL at the core, PMEX brings leadership, governance expertise, and institutional capacity to expand accredited warehouses. This collaboration will enhance trust in stored commodities and improve financing opportunities for farmers and agribusinesses. It also lays the groundwork for deliverable agricultural futures contracts, aligning Pakistan’s commodity markets with global standards and encouraging deeper market participation.
SECP lauded PMEX’s board and management for their strategic vision and commitment to enhancing Pakistan’s commodity market infrastructure. Officials described the milestone as a crucial step toward establishing a transparent, efficient, and resilient agricultural marketplace nationwide.