Author name: Web Desk

ISLAMABAD, 09 June 2026: The Competition Commission of Pakistan (CCP) has recovered Rs30 million from Reckitt Benckiser Pakistan Limited following the Competition Appellate Tribunal’s (CAT) decision upholding CCP’s finding that the company had engaged in deceptive marketing of its product. The recovery follows the Tribunal’s decision on an appeal against CCP’s order dated 9 February 2021, in which the Commission had found the company guilty of disseminating misleading information to consumers regarding the nature and character of the product, in violation of Section 10(2)(b) of the Competition Act, 2010. In its judgment, the Tribunal upheld CCP’s finding that the company had engaged in deceptive marketing practices by creating the impression that Strepsils was a medicinal product for the relief of sore throat despite its deregistration as a drug and its subsequent marketing as a non-medicated product. The product is currently registered as a food item. The Tribunal directed Reckitt Benckiser to pay a penalty of Rs30 million and to fully comply with the corrective measures prescribed by the Commission within the stipulated timeframe. The case originated from a complaint filed by M/s Square Distribution & Marketing System (Pvt.) Limited, which alleged that the company’s advertising and marketing campaigns were misleading consumers regarding the product’s status and characteristics. In its decision, the Tribunal also noted that the company had introduced substantial changes to the product’s packaging and disclosures following CCP’s proceedings. These changes included the prominent display of the disclaimer “Non-Medicated” in both English and Urdu on the front of the packaging and blister packs, enhancing transparency for consumers. As part of CCP’s directions, the company is also required to prominently publicize the change in the product’s status from a medicated/drug category to a food category through advertisements in widely circulated English and Urdu newspapers across Pakistan until full compliance is achieved. The recovery of the penalty reflects CCP’s continued efforts to safeguard consumer interests and ensure that businesses provide accurate, clear, and truthful information regarding their products and services. The Commission remains committed to combating deceptive marketing practices and promoting transparency, informed consumer choice, and fair competition in the marketplace.

Pakistan Mercantile Exchange (PMEX), the country’s only regulated commodity futures exchange, recorded a sharp rise in trading activity during FY2025-26, with annual turnover surging to Rs9.77 trillion despite limited public awareness of the platform and a broker network that has remained largely unchanged over the years. The exchange reported average daily trading volume of Rs32 billion and monthly turnover of Rs977 billion during the fiscal year. Activity peaked at a record Rs177 billion in a single day on October 17, 2025, while monthly volume reached an all-time high of Rs1.8 trillion in October. The growth highlights increasing investor interest in alternative asset classes and commodity-linked products at a time when Pakistan’s financial markets are gradually broadening beyond traditional investments such as stocks, bank deposits and real estate. PMEX Chief Executive Officer Khurram Zafar in an interview said the exchange’s performance demonstrates growing demand for regulated investment avenues, although awareness about commodity trading remains considerably lower than its actual market size. “Many people still do not know that Pakistan has a regulated commodity exchange that opens foot 22 hours and records tens of billions of rupees in daily transactions,” he said while speaking to The Boardroom Pakistan. According to PMEX data, total accounts opened on the platform have reached 67,585. Gold remained the most actively traded product during the fiscal year, followed by currencies traded through Contracts of Trade (COTs), silver, indices and platinum. The dominance of gold reflects investors’ preference for safe-haven assets during periods of economic uncertainty and exchange rate volatility. Currency contracts also attracted significant participation as businesses and investors sought tools to manage foreign exchange risks. Despite the impressive growth in trading volumes, PMEX continues to operate through a relatively small network of approximately 60 to 70 active brokers, a number that industry participants say has remained broadly stagnant for years. The contrast between rising trading activity and a limited broker base has raised questions about the untapped potential of Pakistan’s commodity market. Market experts believe that greater investor education and wider participation could significantly expand the size of the exchange. Unlike many international online trading platforms, PMEX follows a broker-mediated model in which investors access the market through licensed intermediaries, noted the CEO. While this structure strengthens regulatory oversight and investor protection, it also limits direct engagement between the exchange and retail investors. Meanwhile, foreign online trading applications have rapidly gained popularity among young Pakistanis through aggressive digital marketing campaigns. The trend has become increasingly visible as smartphone penetration and broadband connectivity expand across the country. Thousands of young investors have opened accounts on offshore trading platforms that offer direct access to foreign exchange, commodities and other instruments. According to Zafar, the popularity of such platforms is driven not only by technology and marketing but also by their ability to directly engage potential investors. He noted that regulated institutions face significantly higher compliance obligations imposed by the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan (SBP) and other regulatory authorities. These compliance requirements increase operational costs but provide safeguards designed to protect investors and ensure market integrity. Unregulated platforms, on the other hand, often operate outside Pakistan’s regulatory framework while competing for the same pool of investors. Industry observers argue that the rapid growth of these platforms demonstrates strong appetite for investment products among Pakistan’s youth and middle-income households. Rather than viewing the trend as a threat, they suggest policymakers should focus on expanding the regulated investment ecosystem to accommodate growing demand. The government has already initiated efforts to bring some international digital trading and virtual asset platforms such as Binance under regulatory oversight, reflecting a broader shift towards formalising emerging financial markets. For PMEX, however, the significance of growing trading volumes extends beyond investment activity. Zafar believes commodity exchanges can play a wider role in improving market efficiency across the economy. A well-functioning commodity exchange helps establish transparent prices, reduce information gaps and improve confidence among market participants. Such mechanisms are particularly important in developing economies where commodity markets are often fragmented and characterised by inconsistent pricing. The exchange is also promoting the development of certified warehousing and electronic warehouse receipt systems that could eventually support agricultural commodities such as wheat, rice and other crops. Such systems would allow farmers to store produce in accredited facilities and obtain financing against warehouse receipts rather than selling immediately after harvest at depressed prices. Supporters argue that this approach can strengthen supply chains, reduce post-harvest losses and improve returns for producers while ensuring more stable supplies for processors and consumers. Globally, major commodity exchanges play a critical role in connecting producers, consumers, traders, financiers and investors within organised marketplaces. Analysts say Pakistan’s commodity sector remains at an early stage compared to international markets, but the rapid growth in PMEX trading volumes indicates increasing acceptance of commodity-linked investment products. With turnover approaching Rs10 trillion, record trading activity and a growing investor base, PMEX is gradually emerging as an important component of Pakistan’s financial infrastructure. The challenge now is converting that momentum into broader public participation and deeper integration with the real economy. For a platform that remains unfamiliar to many Pakistanis despite handling billions of rupees in daily transactions, the latest growth figures suggest that commodity trading is moving steadily from the margins towards the mainstream of the country’s investment landscape