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 index of top 30 Shariah‑compliant companies on PSX (updated semi‑annually).
• Sahulat Islamic Account – a low‑cost, interest‑free brokerage account introduced by PSX.

PSX Shariah Screening Criteria (Effective 2026)

Under SECP‑approved revisions (February 2026), the criteria are:

1. Non‑compliant income ≤5% of total revenue.
2. Interest‑bearing debt ≤33% of total assets (reduced from 37% previously).
3. Illiquid 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).
4. 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) – diversified 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

1. Open a Sahulat Islamic Account with any PSX broker that offers it (e.g., Alfalah Securities, Arif Habib Ltd).
2. Practice with virtual halal trading on PSE – we provide a Shariah‑filtered stock universe in our simulator.
3. 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.

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