Islamabad, February 11, 2015 (PPI-OT): In order to facilitate farmers in better price discovery access for their products and to provide them easy access to markets, the Securities and Exchange Commission of Pakistan (SECP) has embarked upon developing a road map for the commodity market in Pakistan. The SECP is restructuring the Pakistan Mercantile Exchange Limited (PMEX) to improve its effectiveness and to shape it into a vibrant commodity futures exchange.
The roadmap revolves around the idea whereby commodity exchanges play a pivotal role in the trading cycle of commodities with particular focus on contracts that involve delivery of local agricultural produce like wheat, rice, sugar, potato and others. The development of commodity markets will provide farmers electronic aces to commodities markets and hedging against price risk.
The roadmap also perceives warehousing facilities for commodities as an important component of the commodity trading cycle because warehousing provides producers/farmers/traders standardized storage and smooth delivery of perishable items.
Receipts issued by warehouses convert inventories held by farmers/producers into a readily tradable item at the commodity exchanges. Warehouse receipts can be traded or used as collateral to support borrowing or accepted for delivery against a futures contract.
In order to achieve this expanded role of the PMEX, the SECP is pleased to appoint Dr. Salman Shah as chairman of the board of directors of PMEX. Mr. Shah has held eminent posts in the past like as Minister for Finance, Economic Affairs, Statistics and Revenues. He holds a Ph.D in Finance and Economics from Indiana University. He has also taught at world’s prestigious universities for 16 years.
The SECP is also appointing Mr. Syed Talat Mahmood, President Zarai Taraqiati Bank Limited as director on the board of directors of PMEX. The SECP hopes that their induction will greatly benefit implementation of SECP’s vision for development of a vibrant commodity futures market.
For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)