Pakistan Stock Exchange (PSX) has launched a Shariah-compliant trading counter following the Securities and Exchange Commission of Pakistan’s (SECP) approval of the Shariah Trading Counter Regulations, providing investors with a dedicated platform for Islamic investments.
The counter, launched on October 29, offers retail and institutional investors access to Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk under a regulatory framework designed to ensure compliance with Islamic financial principles.
Thirty-nine brokers have been onboarded to offer Shariah-compliant trading through Islamic windows, while two brokerage houses are licensed as full-fledged Shariah-compliant brokers, PSX said in a press release.
The counter prohibits trading in non-compliant securities, short selling and derivatives. Interest-based leverage products, including Margin Trading System (MTS), are also blocked, with Murabaha Share Financing (MSF) available as a Shariah-compliant alternative. Investors can divest non-compliant holdings to purify their portfolios.
PSX has also introduced a Shariah Portal on its Data Portal, listing all Shariah-eligible stocks and Sukuk. Investors can open accounts, including Sahulat Accounts, using a Shariah-compliant Customer Relationship and Risk Disclosure Document.
“By providing a dedicated trading environment supported by system-based compliance controls, this initiative enhances investor confidence, improves accessibility to Islamic investment opportunities, and further strengthens the country’s Islamic capital market ecosystem,” said Farrukh H. Sabzwari, managing director and chief executive officer of PSX.
Sabzwari said investor accounts had crossed 650,000, with Millennials and Generation Z driving much of the new participation. He expressed confidence that the platform would attract more investors from Pakistan’s predominantly Muslim population.
Imtiaz Haider, commissioner at SECP, said a significant proportion of listed equity securities and mutual fund assets were already Shariah-compliant.
The initiative would help broaden market participation, create new opportunities for investors and the brokerage industry, and strengthen confidence in Shariah-compliant investment options, he added.
Dr Tariq Naseem, head of Islamic Finance at SECP, outlined the next steps, including expanding digital retail Sukuk, introducing Shariah-compliant liquidity and risk-management tools, and strengthening the legislative framework for Islamic financial services.
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