The Punjab government, in collaboration with the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Mercantile Exchange (PMEX), is moving forward with reforms to strengthen the province’s agriculture commodity ecosystem through the Electronic Warehouse Receipt (EWR) System. A high-level meeting was recently convened, bringing together the SECP team led by Commissioner SMD Abdul Rehman Warraich, CFA, FRM, senior officials from PMEX, and Ms. Salma Butt, Special Advisor to the Chief Minister Punjab. The primary agenda centered on introducing digital solutions for wheat storage management and wider commodity market reforms in the province.
During the session, participants explored practical strategies to ensure efficient and transparent agricultural commodity storage while paving the way for a technology-driven ecosystem. One of the major focus points was the leasing of public warehouses through a competitive bidding process. These warehouses would then be accredited under the Electronic Warehouse Receipt system, ensuring that stored commodities such as wheat are properly documented, accessible, and efficiently managed.
Another significant area of discussion was the implementation of targeted storage subsidies. By defining a clear eligibility threshold, the government aims to ensure that small and medium-scale farmers can participate effectively in the EWR framework. This approach is expected to increase inclusivity, reduce wastage, and provide farmers with better access to structured storage facilities.
The meeting also included a proposal from PMEX to establish a pilot model grain mandi in Punjab. The idea is to select and develop this mandi under a modernized system that integrates the EWR framework, thereby creating a replicable model for other districts across the province. Such initiatives could not only streamline wheat storage but also transform how agri commodities are traded in Punjab by providing a digital backbone to the market.
Participants further emphasized the importance of regulatory improvements in fostering a supportive environment for the EWR system. Specifically, they suggested eliminating or substantially reducing sales and services tax on warehouse rentals. This measure, if adopted, could lower operational costs, attract greater participation from private investors, and enhance the financial sustainability of the agri storage ecosystem.
The discussions underscored a shared commitment between SECP, PMEX, and the Punjab government to build a transparent, efficient, and sustainable commodity market. By introducing phased integration of advanced market tools and digital frameworks, stakeholders are aiming to modernize Punjab’s agricultural infrastructure and provide farmers with better access to markets and fairer pricing.
This initiative aligns with broader efforts to digitize agriculture in Pakistan, positioning Punjab as a frontrunner in adopting innovative solutions to enhance productivity and competitiveness. The introduction of the Electronic Warehouse Receipt system is seen as a pivotal step towards reducing post-harvest losses, improving liquidity for farmers, and enabling the creation of a reliable and technology-backed agri commodity marketplace.
