Islamic Stock Investing in Pakistan
A complete, practical guide for halal investing on the Pakistan Stock Exchange.
Wondering whether stock trading is halal at all, or whether it is satta? Read Is stock trading halal or haram in Pakistan? and Is day trading halal?
Why Islamic Investing Matters in Pakistan
Over 41% of adult Pakistanis cite Shariah compliance as a key factor preventing them from investing in stocks. The Federal Shariat Court has set a 2027 deadline to eliminate Riba (interest) from the financial system. Consequently, regulators are rapidly expanding Shariah‑compliant capital market products.
Key Shariah Concepts for Stock Investors
- Halal stocks – companies whose core business does not involve interest, gambling, alcohol, pork, or other prohibited activities.
- Shariah screening – a process to filter companies based on financial ratios (e.g., debt ≤33% of assets, non‑halal income ≤5%).
- KMI-30 Index – the benchmark IndexA number that follows the prices of a group of shares. It shows how that part of the market is moving. The KSE-100 is the best-known index in Pakistan.Full list of terms → of top 30 Shariah‑compliant companies on PSXThe Pakistan Stock Exchange, the national stock exchange of Pakistan. People buy and sell the shares of listed companies there. It was formed in 2016 from the Karachi, Lahore and Islamabad stock exchanges.Full list of terms → (updated semi‑annually).
- Sahulat Islamic Account – a low‑cost, interest‑free BrokerA licensed company or person that buys and sells shares for you. You need a broker to trade real shares on the stock exchange. The broker charges a fee, called commission.Full list of terms → account introduced by PSX.
PSX Shariah Screening Criteria (Effective 2026)
Under SECPThe Securities and Exchange Commission of Pakistan. It is the government body that makes the rules for the stock market and for companies, and checks that they follow them.Full list of terms →‑approved revisions (February 2026), the criteria are:
- Non‑compliant income ≤5% of total revenue.
- Interest‑bearing debt ≤33% of total assets (reduced from 37% previously).
- LiquidityHow easily and quickly you can sell something for cash without changing its price. Shares that many people trade are liquid.Full list of terms → assets must be at least a set share of total assets (25% in the PSX brochure for the index; confirm the current figure with PSX).
- Companies are rated from 3 to 5 stars based on compliance level.
Popular Halal Stocks on PSX (2026 List)
- Meezan Bank (MEBL) – Pakistan’s largest Islamic bank.
- Engro Corporation (ENGRO) – DiversificationPutting your money into different shares or sectors. If one share does badly, the others can protect you from a large loss.Full list of terms → conglomerate; most subsidiaries Shariah‑compliant.
- Pakistan State Oil (PSO) – fuel marketing; meets screening after recent debt reduction.
- Fauji Fertilizer (FFC) – major fertilizer producer.
- Systems Limited (SYS) – leading IT exporter, no interest‑bearing debt.
For a full updated list, visit the PSX website → “Shariah Compliant Securities”.
How to Start Halal Investing Today
- Open a Sahulat Islamic Account with any PSX broker that offers it (e.g., Alfalah Securities, Arif Habib Ltd).
- Practice with virtual halal trading on PSE – we provide a Shariah‑filtered stock universe in our simulator.
- Use a dedicated Islamic broker – many now offer separate Islamic windows without interest on margin.
Pro tip: Even if you invest in halal stocks, avoid trading on margin (borrowed money) as it involves interest.
See it in practice
Join free and follow the market with practice money, using real PSX end-of-day prices.
Start free