The Pakistan Mercantile Exchange (PMEX) is set to launch the beta version of a new e-commerce platform within a month, aimed at enabling commodity producers to directly sell their merchandise to global buyers.
Known as the Global Commodity Trading Platform (GCTP), this wholly owned subsidiary of the PMEX will function similarly to Amazon, according to PMEX Managing Director Ejaz Ali Shah.
The GCTP will offer Pakistani sellers of agricultural and non-agricultural goods an alternative to traditional trade finance mechanisms like letters of credit.
Buyers will have the convenience of selecting commodities, volumes, and prices on the platform, along with access to a comprehensive logistics suite for shipping and tracking, making it a convenient one-window solution.
During its initial test phase, the platform has already handled a few transactions, and the beta run is expected to encompass a dozen or so transactions before the full-fledged rollout.
Additionally, PMEX is actively working on introducing the trade of treasury bills and Pakistan Investment Bonds (PIBs) on the exchange. This move is intended to democratize government paper trading, making it accessible to retail investors rather than being dominated by institutions.
PMEX has ambitious plans for the future, including the introduction of futures contracts for digital gold and single stocks of renowned US companies like Apple, Alphabet, Microsoft, Meta, and Tesla. These single-stock contracts will be cash-settled in local currency, reducing foreign-exchange risks for local investors.
The exchange’s recent financial performance has been promising, with a net profit of Rs207 million in 2022-23 and a full recovery of its equity.
The trading volume also saw a significant increase of 20.2% from the previous year. Despite these achievements, PMEX aims to attract more investors to its platform and believes there is a vast untapped potential in Pakistan’s market.
With over 55 million bank accounts in the country, PMEX sees an opportunity to generate two to five million new unique identification numbers (UINs) and achieve widespread penetration across the nation.