In a landmark step toward the digital transformation of Pakistan’s agricultural economy, the Government of Punjab has officially designated the Pakistan Mercantile Exchange (PMEX) as the trading platform for Electronic Warehouse Receipts (EWRs) for wheat under the Chief Minister Punjab EWR Financing Facility. This initiative marks a significant stride in modernizing the post-harvest value chain, improving farmer access to finance, and integrating rural economies with digital financial ecosystems.
Under this facility, wheat stored in accredited warehouses will now be digitally traded on PMEX’s secure and SECP-regulated electronic platform. The system enables real-time price discovery, ensures transparency in trade, and opens up access to competitive market pricing and liquidity for farmers, traders, and investors across the country—all through mobile devices. This means that a wheat farmer in a remote district can now gain visibility into national prices and sell at market value without being constrained by local middlemen or distressed sales.
“We are honoured to support the Government of Punjab in this transformative step,” stated Khurram Zafar, CEO of PMEX. “Our state-of-the-art platform will ensure farmers and traders benefit from real-time price discovery, transparency, and trust—the essential components of a robust agricultural trading ecosystem.”
Electronic Warehouse Receipts act as digital proof of ownership for commodities, issued by licensed and accredited warehouses. These receipts are supported by a tightly integrated system of collateral management companies, certified warehouse operators, and partner financial institutions. The ecosystem also features participation from key national regulators such as the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP), which have both endorsed the digital transformation of agricultural finance as a strategic imperative.
By connecting rural producers to a regulated and digitized trading system, this initiative aims to reduce inefficiencies in the post-harvest supply chain, curb the problem of distress selling by farmers, and foster financial inclusion. It also strengthens documentation and compliance in a segment of the economy that has long operated informally.
The significance of the initiative lies not just in offering a digital trading platform, but in positioning agriculture within Pakistan’s formal economy. Through PMEX, physical wheat and, eventually, other crops like sugar, rice, maize, gram, and cotton, will be brought under centralized, risk-managed, and transparent trade mechanisms. “This is a long-time dream coming true,” one industry insider commented, noting that the shift to regulated electronic trading will bring about nationwide price discovery, better credit access, and central counterparty risk management—cornerstones of a mature agri-financial system.
PMEX, which ended the previous month with a trading volume exceeding PKR 1.1 trillion and single-day peaks above PKR 90 billion, expects these numbers to rise significantly as physical commodities start flowing through the exchange. With wheat and sugar already in the pipeline, the focus on expanding to other key crops could revolutionize agricultural trade in Pakistan.
The move reaffirms the power of digital transformation in solving traditional sector challenges. By merging technology with governance and market access, the Punjab government’s initiative with PMEX could become a blueprint for rural economic modernization across developing economies.
