Executive Summary

Only 0.8% of Pakistan’s adult population invests in the stock market. This survey, conducted by Pak Stock Exchange (PSE) in collaboration with SECP’s investor awareness wing, identifies the biggest obstacles and the most effective solutions. The top three barriers: lack of financial literacy (64.5%), perceived risk (36%), and Shariah compliance concerns (20.6%).

Methodology

Online survey, stratified by age, city, and income. 2,500 respondents: 40% non‑investors, 35% beginners (less than 1 year experience), 25% experienced. Margin of error ±2%.

Detailed Barriers

1. Lack of financial knowledge (64.5%) – “I don’t know what a P/E ratio is.” “I don’t understand annual reports.”
2. Risk perception (36%) – “I’m afraid of losing my savings.” “Stock market is gambling.”
3. Shariah compliance concerns (20.6%) – “I don’t know which stocks are halal.” “Brokers charge interest.”
4. Minimum capital requirement (15%) – “I think I need at least Rs. 50,000 to start.”
5. Lack of trust in brokers (12%) – “I don’t know which broker is reliable.”

What Would Encourage Investment?

• Digital onboarding (71%) – ability to open a brokerage account via mobile app in minutes.
• Free educational tools (68%) – video tutorials, glossaries, and virtual simulators.
• Virtual practice accounts (58%) – already offered by PSE with Rs. 1,000,000 play money.
• Shariah‑certified investment options (41%) – dedicated Islamic accounts and stock lists.

Opportunities for Policymakers & Educators

Based on the data, we recommend:

• Mandate financial literacy in high school curricula – a 5‑hour module on stocks, bonds, and risk can reduce fear.
• Expand virtual trading competitions – SECP and PSX should sponsor inter‑university tournaments (PSE already runs quarterly cash‑prize contests).
• Create a national halal stock index with clear real‑time screening – 41% of non‑investors would enter via Islamic products.
• Promote Sahulat accounts – low‑cost accounts with lower minimum balance.

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