PMEX Facilitates Pakistan’s First Electronic Murabaha Transaction

Karachi: Pakistan Mercantile Exchange Limited (PMEX), country’s only multi-commodity futures exchange, has achieved yet another breakthrough by facilitating the country’s first electronic Murabaha transaction, which in essence will pave the way for an Islamic Money Market. Meezan Bank was the Shariah Technical Services Provider for development of this Shariah-compliant trading platform at PMEX.

State Bank of Pakistan of Pakistan (SBP) had earlier allowed banks to conduct transaction on PMEX Sharia Compliant Trading Platform (SCTP) in a limited capacity for the pilot period of three months. The first electronic commodity Murabaha transaction was conducted between Meezan Bank Limited (MBL) and Dubai Islamic Bank Pakistan Limited (DIBPL) on December 26, 2017.  

This is a revolutionary and landmark achievement in the history of Pakistan, which has the potential of bringing Islamic banks at par with their conventional counterparts in terms of managing excess liquidity in a convenient, transparent and Shariah-compliant manner. Islamic Financial Institution’s (IFI’s) can utilize this facility to deploy liquidity to all potential segments, including the government. The Exchange has ensured, in consultation with its Sharia Advisor, Dr. Imran Usmani, that the product is completely Shariah-compliant. The product has been vetted by Sharia Board of State Bank of Pakistan (SBP) Chaired by Respected Justice (R) Muhammad Taqi Usmani, Securities & Exchange Commission of Pakistan (SECP) and Islamic Banking Sub Committee of Pakistan Banks’ Association.

Commenting on the momentous occasion, Managing Director of PMEX, Mr. Ejaz Ali Shah, said, “Today is a historic day as we have embarked upon a journey which will revolutionize the landscape of Pakistan’s Islamic Financial Industry. PMEX’s Sharia Compliant Trading Platform, developed to facilitate Electronic Commodity Murabaha, is a prime example where all stakeholders, i.e. Regulators (both SECP & SBP), Financial Industry Players, Sharia Scholars and Private Sector Institutions have come together, with the Exchange at the core, for this landmark achievement. Over three and a half years of perseverance by the Exchange has translated into an ecosystem which will keep bearing fruits for years to come.”***