Pakistan Stock Exchange Launches Shariah-Compliant Trading Counter for Islamic Investors
- Pakistan Stock Exchange introduces a dedicated Shariah-compliant trading counter on October 29, 2026.
- A total of 39 brokers and two fully licensed Islamic brokerage houses will facilitate Shariah-compliant investments.
- Investors can trade eligible stocks, Government Ijarah Sukuk and corporate Sukuk without interest-based financing or prohibited trading practices.
The Pakistan Stock Exchange (PSX) has officially launched a Shariah-compliant trading counter, providing investors with a dedicated platform to invest in stocks and Islamic financial instruments in accordance with Islamic principles.
The new facility, introduced on October 29, 2026, follows the approval of Shariah Trading Counter Regulations by the Securities and Exchange Commission of Pakistan (SECP). The initiative aims to expand Islamic investment opportunities and encourage greater participation in Pakistan’s capital market.
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Under the new trading framework, individual and institutional investors can buy and sell Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk through a regulated trading environment.
According to PSX, 39 brokerage firms have been registered to provide Shariah-compliant trading services through dedicated Islamic windows. Additionally, two brokerage houses have obtained licences to operate as fully Shariah-compliant brokers.
The trading counter incorporates automated compliance controls to ensure that investment activities remain consistent with Islamic financial requirements.
Trading in securities that do not meet Shariah standards is prohibited, along with short selling and derivatives transactions. Interest-based financing facilities, including the Margin Trading System (MTS), are also restricted.
Instead, investors can access Murabaha Share Financing (MSF), an Islamic financing arrangement designed to provide a Shariah-compliant alternative to conventional margin financing.
The platform also allows investors holding non-compliant securities to sell those investments as part of the process of making their portfolios Shariah-compliant.
To improve transparency and accessibility, PSX has introduced a dedicated Shariah Portal within its existing Data Portal. The facility provides information about stocks and Sukuk that qualify for Islamic investment.
Investors can open regular trading accounts as well as Sahulat Accounts using specially developed Shariah-compliant customer relationship and risk disclosure documentation.
Speaking at the launch, PSX Managing Director and Chief Executive Officer Farrukh H. Sabzwari said the dedicated trading environment would strengthen investor confidence by ensuring that compliance requirements are supported through system-based controls.
He noted that the initiative would make Islamic investment products more accessible while contributing to the development of Pakistan’s Islamic capital market.
Sabzwari also revealed that the number of investor accounts at PSX had exceeded 650,000, with Millennials and Generation Z accounting for a significant share of new market participants.
He expressed confidence that the Shariah-compliant trading counter would encourage more people to enter the stock market, particularly among Pakistan’s predominantly Muslim population seeking investment opportunities aligned with their religious beliefs.
SECP Commissioner Imtiaz Haider welcomed the development, highlighting that a substantial proportion of securities listed on the stock exchange and assets held by mutual funds already meet Shariah requirements.
He said the new trading facility would create additional opportunities for investors and brokerage firms, increase market participation and strengthen public confidence in Islamic investment products.
Meanwhile, SECP Head of Islamic Finance Dr Tariq Naseem outlined further initiatives planned to expand the country’s Islamic financial market.
These include increasing the availability of digital retail Sukuk, developing Shariah-compliant liquidity management and risk management instruments, and strengthening the legal and regulatory framework governing Islamic financial services.
