KARACHI — The Pakistan Mercantile Exchange (PMEX), the country’s sole multi-commodity futures exchange, is set to launch Deliverable Sugar Futures, following the contract’s formal approval by the Securities and Exchange Commission of Pakistan (SECP).
This landmark development is expected to bring greater transparency, efficiency, and regulation to Pakistan’s sugar market—one of the country’s most significant agro-based sectors. For years, the sugar industry has grappled with issues such as price manipulation, unchecked speculation, hoarding, and supply chain inefficiencies.
The new futures contract aims to provide a transparent price discovery mechanism through a regulated national trading platform, while also supporting effective risk management and improved market documentation.
Bridging Market Gaps Through Innovation
“With Sugar Futures, PMEX is turning the tide—ushering in transparency, price stability, and a future where fair trade leads the way,” stated Khurram Zafar, CEO of PMEX. “Sugar is one of Pakistan’s most traded commodities, yet it lacks structure and transparency. This initiative is designed to change that.”
To prepare the market for this shift, PMEX recently organized roadshows across key trading hubs, including Sargodha and Lahore. These sessions brought together a broad range of stakeholders—sugar millers, brokers, traders, dealers, and institutional buyers—for comprehensive training and orientation.
Participants received detailed briefings on contract specifications, live trading demonstrations, and guidance on the account opening process. The sessions also included mock trading exercises to familiarize users with the PMEX platform ahead of the official launch.
Regulatory and Government Backing
The initiative has received strong support from regulators and provincial authorities. SECP Commissioner Abdul Rehman Warraich praised the move and assured full backing from the commission to ensure its success. Likewise, Muhammad Ajmal Bhatti, Secretary of the Price Control & Commodities Management Department of the Government of Punjab, expressed the provincial government’s commitment to supporting the effort.
Industry insiders believe that the introduction of deliverable futures contracts could be a game-changer for Pakistan’s commodity markets. Not only will it reduce volatility and speculative practices, but it will also encourage more formal documentation and participation in the market.
The launch of Deliverable Sugar Futures marks a pivotal moment for Pakistan’s agro-economy, aligning with broader goals of economic modernization and supply chain transparency.
