PMEX held a briefing session on PMEX Shariah Compliant Trading Platform (SCTP), exclusively designed for the Islamic Financial Institutions (IFIs) to execute commodity Murabaha transactions in a convenient, transparent and Shariah complaint manner.
The session held at IBA -Centre for Excellence in Islamic FInance (CEIF) was attended by senior officials from various IFIs such as Al Baraka Bank, BankIslami Pakistan, Dubai Islamic Bank, Habib Bank, Habib Metropolitan Bank, MCB Bank, Meezan Bank, Standard Chartered Bank, United Bank and National Bank of Pakistan. The objective of the session was to acquaint the IFIs about the role of PMEX & market participants in the Murabaha transaction model and trading mechanism.
On the occasion, Mr. Ejaz Ali Shah, Managing Director, PMEX, said, “We have taken the initiative to develop an SCTP to facilitate the IFIs. It is in line with the platforms offered by international commodity exchanges such as London Metal Exchange, Bursa Malaysia and Jakarta Futures Exchange, which are also enabling Murabaha transactions and are acting as hubs for Islamic Banking liquidity management. We are confident that the SCTP would strengthen the Islamic financial sector of Pakistan by bringing it at par with conventional banks with regards to efficient deployment of liquidity. We envision that the SCTP will eventually serve as an industry benchmark and be the first choice for the IFIs.”
PMEX feels that the keen interest shown by the participants is encouraging and the SCTP will be a game changer for Islamic banks in overcoming surplus liquidity issue. At present, all the modalities have been worked out and the Exchange is planning to launch the product soon.