PMEX set to launch deliverable sugar futures

KARACHI: The Pakistan Mercantile Exchange (PMEX), the country’s only licensed, multi-commodity futures exchange, is preparing to launch deliverable sugar futures after the Securities and Exchange Commission of Pakistan (SECP) recently approved the contract -- a step towards improving transparency and efficiency in Pakistan’s sugar trade.

As one of Pakistan’s largest agro-based sectors, the sugar industry has long faced challenges including unregulated pricing, excessive speculation, hoarding and supply chain inefficiencies.With this move, the industry will gain access to a regulated, national platform that enables transparent price discovery, streamlined trading, effective risk management and enhanced market documentation, said a press release on Thursday.

Ahead of the launch, PMEX conducted a roadshow in multiple cities including Sargodha and Lahore, the largest sugar trading hubs in Pakistan, bringing together sugarmillers, brokers, traders, dealers and large sugar buyers.

These sessions offered the participants detailed orientation to the new contract specifications, live trading demonstrations, overview of the account opening process and training on how to conduct mock trading on PMEX before the contract launch.

SECP Commissioner Abdul Rehman Warraich and Secretary of the Price Control abd Commodities Management Department, Government of Punjab Muhammad Ajmal Bhatti addressed the participants and commended the initiative, assuring the full support of the regulator and the provincial government, respectively.

Speaking at the event, PMEX CEO Khurram Zafar highlighted the transformative potential of the initiative: “Sugar is one of Pakistan’s most traded commodities, yet it lacks structure and transparency. With sugar futures, PMEX is turning the tide, ushering in transparency, price stability and a future where fair trade leads the way,” Zafar said.