Islamabad: Futures trading in agricultural commodities is set to begin at the Pakistan Mercantile Exchange in the coming months, marking an expansion beyond its current focus on precious metals, Dawn reported.
PMEX Chief Executive Khurrum Zafar on Monday said the exchange has completed all formalities required to start trading in rice, maize and sugar. He said rice futures are expected to be launched in the coming months, while sugar contracts are likely to be introduced next quarter.
Addressing stakeholders, Zafar invited banks and traders from Islamabad and nearby areas to participate in commodity trading through the regulated platform. He said the traditional 125-year-old mandi-based system should transition to a modern digital framework.
“We need to create an impact on the lives of farmers, who suffer due to repeated price fluctuations,” he said, stressing that a structured trading system could help address these challenges.
The exchange has already finalised terms with dealers and sugar mills for sugar futures trading. Contracts for maize and rice are also expected to go live on the platform soon.
PMEX is the only commodity futures exchange in Pakistan licensed and regulated by the Securities and Exchange Commission of Pakistan. Officials said any trading conducted outside this framework is unregulated, and investors should trade only through brokers licensed by the exchange.
Zahid Latif, Director at PMEX, said that transparent price discovery and the ability to manage price risks would benefit participants across the supply chain, from farmers to consumers. He added that the country needs a reliable warehousing system so that traders in remote areas can trust the quality of produce without having to inspect it physically.
