Project Description
Pakistan Commodities developed under the Agriculture Competitiveness Umbrella Concept Note in collaboration with MAS and key stakeholders, aims to strengthen Pakistan’s agricultural commodities market by improving policies, regulations, and infrastructure to boost private sector participation, productivity, climate resilience, and food security. The project focuses on three interconnected components: i) enhancing price discovery and transparency through the development of a futures trading platform at PMEX, supported by regulatory reforms, capacity building, and stakeholder engagement to promote trading of crops like maize, rice, and wheat; ii) expanding adoption of electronic warehouse receipts (eWHR) by improving warehousing and collateral management regulations, increasing accredited facilities from 15 to 30, facilitating $80 million in financing (including $1 million to small farmers), and promoting cooperative storage solutions; and iii) improving access to quality, certified, and resilient seed varieties by streamlining seed registration, certification, and plant breeder rights processes to incentivize local R&D and increase new seed variety approvals.
Together, these components address critical constraints in Pakistan’s agriculture sector, such as inefficient price discovery, inadequate storage, limited access to finance for small farmers, post-harvest losses, and low availability of certified seeds through out the country. By leveraging World Bank Group expertise and fostering policy reforms, the project links innovations in seed and production to increased demand for modern warehousing and commodities trading, contributing to food security goals under the Pakistan Country Partnership Framework (2024-35) and in line with the objectives of WBG Global Challenge Program on Food and Nutrition Security. The expected outcomes include 50 futures trades for key crops, 50 new seed varieties registered, improved truth-in-labeling enforcement, and strengthened private-sector-led agribusiness, ultimately improving resilience, reducing losses, and increasing productivity in the face of mounting climate change challenges which Pakistan is witnesseing more than ever.