Aamir Khan, chairman of the Securities and Exchange Commission of Pakistan (SECP), said in an interview that due to significant improvements in Pakistan’s agri- tech market, technology, high teledensity, internet access, and electronic payments infrastructure, the regulator’s Acceptable behavior has the potential to be massive.
He expressed these views at a hybrid conference ‘Agritech: Empowering Rural Farmers’ organized by Pakistan Fantech Network and Pakistan Microfinance Network Department. He said that in order to overcome the challenges facing the agricultural sector, it needs to integrate with technology, but in order to do so, it needs to understand the demands of small farmers and support them to measure them. You have to start the journey.
Pakistan’s economy is largely dependent on the agricultural sector for job creation, ensuring food security at all costs and supporting a healthy balance of payments. Some of the key issues in this sector include lack of access to formal credit, minimal use of technology, and the risks posed by climate change. Khan said that with Pakistan’s large population and the threat of climate change, modern solutions need to be used to ensure the expansion, sustainability, and efficiency of the agricultural value chain.
The SECP has made significant improvements to the regulatory ecosystem by facilitating the establishment of startups and improving access to finance, but it has also provided ideas for live testing in a controlled environment for startups. The door is also open.
Khan explained that in addition to traditional agricultural products and crop insurance schemes run by the current government, the has approved parametric insurance solutions for live testing under its regulatory sandbox initiative. So far, it includes 61 wheat farmers in Rahim Yar Khan District, covering an area of 168 acres. The unit based on the solution based on parametric insurance technology protects the insured based on parameters such as rainfall or crop production in the unit area, and is especially suitable for small farmers.