Pakistan Stock Exchange Launches Shariah-Compliant Trading Counter for Islamic Investors
Pakistan’s stock market now has a dedicated home for Islamic investing. The Pakistan Stock Exchange (PSX) has launched a Shariah-compliant trading counter that only allows securities screened as compliant with Islamic principles — Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk — while blocking non-compliant securities, interest-based leverage, short selling and derivatives. The counter went live on Thursday, 29 October 2026, with a gong ceremony in Karachi attended by regulators, Shariah scholars and brokerage houses.
Key points
- Launched: 29 October 2026, after the Securities and Exchange Commission of Pakistan (SECP) approved the Shariah Trading Counter Regulations.
- 39 brokers onboarded to offer Shariah-compliant trading through Islamic windows, plus 2 brokerage houses licensed as full-fledged Shariah-compliant brokers.
- Allowed: Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk.
- Blocked: non-compliant securities, interest-based margin trading (MTS), short selling and derivatives. Murabaha Share Financing (MSF) is offered as the Shariah-compliant alternative to margin lending.
- A new Shariah Portal on the PSX Data Portal lists every Shariah-eligible stock and Sukuk.
- Investors can open accounts, including Sahulat Accounts, through a Shariah-compliant customer relationship and risk disclosure document, and can divest non-compliant holdings to purify their portfolios.
What the counter is
The counter is a separate, regulated trading environment inside the PSX, governed by operational procedures prescribed by the exchange and approved by the SECP, with system-based compliance controls. Instead of investors having to screen every trade themselves, the counter only permits securities that have already passed Shariah screening — so a trade placed through it stays within Islamic principles by design.
What you can and cannot trade
| Allowed on the counter | Not allowed |
|---|---|
| Shariah-compliant equities | Non-compliant securities |
| Government Ijarah Sukuk | Interest-based leverage (Margin Trading System) |
| Corporate Sukuk | Short selling and derivatives |
Murabaha Share Financing (MSF) replaces conventional margin lending as the permitted financing route.
The groundwork behind the launch
This launch did not come out of nowhere. The idea of a Shariah counter at the PSX has been discussed for years, and the regulatory groundwork was laid in 2026: the SECP’s dedicated Islamic brokerage framework followed by new PSX regulations (Chapter 4A, “Shariah-Compliant Securities Trading”) that took effect on 23 September 2026. The 29 October launch is the moment the counter itself actually went live for investors.
Why it matters for ordinary investors
Pakistan has one of the world’s largest Islamic banking sectors by share of assets, and a significant share of listed equities and mutual fund assets is already Shariah-compliant. PSX chief executive Farrukh H. Sabzwari said the dedicated environment, backed by system-based compliance controls, should raise investor confidence and widen access to Islamic investment opportunities. Investor accounts on the exchange have crossed 650,000, with younger investors driving much of the new participation. The launch also fits the wider direction set in 2022, when the Federal Shariat Court directed the elimination of interest-based banking and financial systems by 2027.
What happens next
SECP’s Head of Islamic Finance, Dr Tariq Naseem, outlined the next steps: expanding digital retail Sukuk, introducing Shariah-compliant tools for liquidity and risk management, and strengthening the legislative framework for Islamic financial services. For investors, the practical next step is simple: the Shariah Portal now lists every eligible stock and Sukuk in one place.
This article is for information only and is not investment advice. Investment decisions should be made after personal research and, where needed, advice from a qualified professional.
What is the PSX Shariah-compliant trading counter?
It is a dedicated trading counter at the Pakistan Stock Exchange, launched on 29 October 2026, where only Shariah-compliant securities can be traded.
What can be traded on the counter?
Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk. Non-compliant securities are prohibited.
How many brokers offer Shariah-compliant trading on the counter?
39 brokers have been onboarded through Islamic windows, and 2 more brokerage houses are licensed as full-fledged Shariah-compliant brokers.
Is margin trading allowed on the Shariah counter?
No. Interest-based margin trading (MTS) is blocked; Murabaha Share Financing (MSF) is the Shariah-compliant alternative.
Where can I find the list of Shariah-eligible stocks?
On the new Shariah Portal on the PSX Data Portal, which lists every Shariah-eligible stock and Sukuk.
Sources: Mettis Global, Dunya News, ARY News
