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The Pakistan Stock Exchange (PSX) has launched a Shariah-Compliant Trading Counter to expand access to Islamic investment opportunities for retail and institutional investors.
The launch follows approval of the Shariah Trading Counter Regulations by the Securities and Exchange Commission of Pakistan (SECP). The initiative provides investors with a dedicated trading environment designed to support Shariah-compliant investing through system-based controls.
PSX marked the launch with a gong ceremony attended by representatives of the SECP, State Bank of Pakistan (SBP), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL) and Pakistan Stock Brokers Association (PSBA), alongside Shariah scholars and participating brokerage houses.
According to PSX, 39 brokers have joined the initiative to offer Shariah-compliant trading through Islamic windows. Two additional brokerage houses hold licences to operate as full-fledged Shariah-compliant brokers.
The new counter operates under procedures and regulations prescribed by PSX and approved by the SECP. It permits trading in Shariah-compliant equities, Government Ijarah Sukuk and corporate Sukuk.
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The framework prohibits non-compliant securities, short selling and derivatives trading. It also blocks interest-based leverage products, including Margin Trading System (MTS), and offers Murabaha Share Financing (MSF) as a Shariah-compliant alternative.
Investors can also divest non-compliant holdings to help purify their portfolios.
PSX has introduced a dedicated Shariah Portal on its Data Portal, which lists stocks and Sukuk eligible for Shariah-compliant investment. Investors can open accounts, including Sahulat Accounts, through a Shariah-compliant Customer Relationship and Risk Disclosure Document.
PSX Managing Director and Chief Executive Officer Farrukh H. Sabzwari said the initiative would improve access to Islamic investment opportunities and strengthen Pakistan’s Islamic capital market.
“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,” Sabzwari said.
He added that investor accounts had exceeded 650,000, with Millennials and Generation Z driving much of the recent participation. He also expressed confidence that the new counter could attract more investors from Pakistan’s predominantly Muslim population.
SECP Commissioner Imtiaz Haider said a significant proportion of listed equity securities and mutual fund assets were already Shariah-compliant.
He said the new initiative could broaden market participation, create opportunities for investors and brokerage firms, and strengthen confidence in Islamic investment products.
Dr Tariq Naseem, Head of Islamic Finance at the SECP, outlined further steps to develop the Islamic finance market. These include expanding digital retail Sukuk, introducing Shariah-compliant liquidity and risk-management tools, and strengthening the legislative framework for Islamic financial services.
The launch marks a further step in Pakistan’s efforts to develop its Islamic capital market and provide investors with trading options aligned with Shariah principles.
