Lahore Stock Exchange Managing Director Aftab Ahmad Chaudhry has asked the government to either give Pakistan Mercantile Exchange under the control of all three stocks exchanges or allow setting up of Spot Commodity Exchange, specifically for trading of agriculture produce.
While talking to reporters here Friday, Aftab said Pakistan Mercantile Exchange has failed to attract investors in trading of agriculture produce like wheat and rice, as most of the trading at the PME takes place in metal like gold or crude oil. The potential in the agriculture sector does not reflect at the country’s mercantile exchange while proposed Spot Commodity Exchange would help achieve this goal. He was of the view that the proposed Exchange should be a subordinate organization of Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange. He further said that themanagement control of the proposed Exchange should be given to all the three stocks exchanges if they succeed in managing 40 percent of its share.
He maintained that the proposed Exchange would help provide maximum price to the farmers besides eliminating the role of middle men. Moreover, the informal lending in the agriculture sector could be brought in to banking channel, he said. “Now the competitive position of the Lahore Stock Exchange depends upon agriculture sector” he added.
Aftab Chaudhry said that the government t should also procure wheat to ensure food security from the Spot Commodity Exchange. “We want building of international standard warehouse for maintaining crops’ stocks across the country while farmers would have facility for disposing of their produce atspot rate through the Exchange’s mobile trading units at their door-steps” he maintained.