KARACHI: In a landmark development for Pakistan’s agricultural sector, Pakistan Mercantile Exchange Limited (PMEX), has signed a strategic agreement with Meskay & Femtee Trading Company, one of Pakistan’s leading agri-commodity traders and exporters.
For the first time in Pakistan’s history, agricultural commodities, starting with wheat and rice, will be traded on a formal, documented and transparent exchange-based platform, enabling credible price discovery and supporting free-market operations in the agri economy. Pursuant to this agreement signing, the exchange expects the trading of enlisted agri-futures contracts to commence later this month.
By integrating major agricultural trade flows onto PMEX’s platform, the initiative is expected to deliver broad-based benefits across the value chain, enabling farmers to access transparent price signals, while traders and exporters benefit from standardization and effective risk management. Importers, processors, and investors gain reliable price benchmarks and documented, regulated transactions. The collaboration will commence with deliverable wheat and rice futures.
As anAgri Market Maker on PMEX, Meskay & Femtee Trading Company will provide continuous two-way quotes and bring sizeable agri-commodity volumes onto the Exchange, deepening liquidity, improving price discovery, and reducing volatility for market participants. Market makers play a critical role in ensuring depth and continuity in futures trading by actively participating on both the buy and sell side.
Established in 2006, Meskay & Femtee Trading Company is one of Pakistan’s leading agri-commodity exporters, with a strong focus on rice alongside wheat, corn, and sesame. The company is amongst the top 2 largest millers in the country and also the largest farm mechanization company, covering procurement, processing, warehousing, and exports, and maintains significant storage and logistics infrastructure all over Pakistan.
At the signing ceremony, the management of PMEX and Meskay & Femtee Trading Company commented that this partnership aligns with a mutual objective of strengthening Pakistan’s agricultural commodities market ecosystem by actively connecting physical agri-commodity supply chains with exchange-traded products.
Copyright Business Recorder, 2026
The Digital Harvest: How PMEX’s New Futures Contract Could Save Pakistan Billions
KARACHI: In a quiet but revolutionary shift for Pakistan’s agrarian economy, the Pakistan Mercantile Exchange (PMEX) has struck a strategic alliance with Meskay & Femtee Trading Company to launch deliverable futures contracts for wheat and rice. While financial derivatives often sound abstract, the on-ground implication of this deal is tangible and profound: it promises to liberate the Pakistani farmer from the centuries-old grip of informal middlemen (
arhtis) and plug a
$4 billion annual hole in the national economy.
For the first time, Pakistan's two staple crops—wheat and rice—will move from an opaque, cash-based open market to a transparent, regulated, and digitized exchange.
Breaking the ‘Arhti’ Trap
For decades, the smallholder farmer has been caught in a cycle of debt. Lacking access to formal banking, they borrow from local middlemen at usurious rates to buy seeds and fertilizer. When harvest comes, they are forced to sell their produce to that same middleman at a suppressed price to settle debts, often immediately after harvest when prices are lowest.
The PMEX-Meskay partnership disrupts this dynamic through the
Electronic Warehouse Receipt (EWR) system.
Under this new regime, a farmer can deposit their harvest in an accredited, climate-controlled warehouse managed by logistics partners. In return, they receive a digital receipt (the EWR). This receipt is not just a piece of paper; it is bankable collateral. Farmers can walk into a bank and secure a loan against their stored crop at standard interest rates, giving them the "holding power" to wait for better market prices rather than panic-selling.
The $4 Billion Opportunity
The macroeconomic argument for this shift is staggering. According to recent data from the Ministry of National Food Security and international agencies, Pakistan loses approximately
30-40% of its food production annually to post-harvest losses—rotting in open fields, eaten by pests, or damaged in transit.
In monetary terms, this wastage is valued at roughly
$4 billion (approx. PKR 1.1 trillion) annually.
By mandating that exchange-traded crops be stored in accredited, standard-compliant warehouses, this initiative directly attacks that wastage. If the PMEX ecosystem can reduce these post-harvest losses by even half, it would effectively inject
$2 billion back into the rural economy without planting a single extra acre of land. This is a direct contribution to GDP growth, derived purely from efficiency.
The Role of the Market Maker
Exchanges often fail in developing markets due to a lack of liquidity—farmers want to sell, but there are no active buyers. This is where
Meskay & Femtee Trading Company steps in as the official
Agri Market Maker.
As one of the country's top two rice millers and a leading exporter, Meskay & Femtee has committed to providing "two-way quotes"—continuously offering to both buy and sell. This ensures that when a farmer or a cooperative wants to hedge their risk or sell their crop on the exchange, there is always a counterparty available. This liquidity is the engine that will keep the new system running.
A New Era of Price Discovery
Perhaps the most significant long-term benefit is
Price Discovery. Currently, wheat prices are often artificially fixed by government procurement drives, which leads to circular debt and massive storage mismanagement.
A functioning futures market allows prices to be set by actual supply and demand. It provides the government with an exit strategy from the heavy burden of wheat procurement, allowing the private sector to take over storage and trade while the state plays the role of a regulator rather than a buyer.
Conclusion
The success of this initiative will depend on the "last mile"—ensuring that small farmers in districts like Sheikhupura and Muridke can actually access the digital platform. However, the structure is now in place. By digitizing the harvest, Pakistan is not just modernizing its trade; it is finally treating agriculture as a serious industry rather than a subsistence activity.