ISLAMABAD: Top officials from the United States and Pakistan convened yesterday to explore the potential establishment of a commodities market in Pakistan, aimed at enhancing the country's agricultural sector.

The discussion took place during a meeting between Pakistan's Federal Minister for Finance and Revenue, Muhammad Aurangzeb, and Kevin Piccoli, Deputy Director at the US Commodity Futures Trading Commission (CFTC). The meeting, which also included Chairman of the Securities and Exchange Commission of Pakistan (SECP) Akif Saeed and senior officials from both the Finance Division and the US Embassy in Pakistan, focused on the pivotal role of a well-regulated agricultural commodities market. According to a statement issued by the Finance Division, the discussion emphasized the collaboration between the SECP and CFTC on a series of capacity-building training sessions. These sessions will cover the development of a commodities futures market, regulation, and oversight, all aimed at establishing a robust commodities market in Pakistan.

Minister Aurangzeb expressed strong support for the initiative, underscoring the significance of agriculture in Pakistan's economy. He highlighted that agriculture, alongside information technology (IT), serves as a cornerstone of the nation's economic growth. The Finance Minister noted that while Pakistan's economy grew by 2.38% during the fiscal year 2024, the agriculture sector emerged as a major growth driver, achieving an impressive 6.25% growth due to double-digit increases in the output of major crops. Aurangzeb emphasized that both agriculture and IT are primarily driven by domestic factors, and their healthy and consistent growth is a positive indicator for the country's economic stability. He pointed out that the ongoing development in these sectors could enhance Pakistan's export potential and provide a stabilizing effect on the national economy. The potential creation of a commodities market in Pakistan is expected to provide a structured platform for trading agricultural products, which could lead to more efficient market operations and better price discovery for farmers. This initiative aligns with broader efforts to modernize and strengthen Pakistan's agricultural sector, which plays a crucial role in the country's overall economic framework.

The discussions mark a significant step in fostering international collaboration to support Pakistan's economic and agricultural development, reflecting a mutual interest in enhancing sectoral efficiency and growth.