The Pakistan Stock Exchange (PSX) launched a Shariah-Compliant Trading Counter on 29 October.
The Securities and Exchange Commission of Pakistan (SECP) approved the regulations governing this trading counter. Thirty-nine brokers and two brokerage houses are involved in the new platform. Trading on the counter is restricted to Shariah-compliant equities, Government Ijarah Sukuk, and Corporate Sukuk.
The exchange prohibits non-compliant securities and blocks interest-based leverage products such as Margin Trading System (MTS). Murabaha Share Financing (MSF) serves as the Shariah-compliant alternative for investors. Short selling and derivatives trading are also excluded from the counter.
A new Shariah Portal on the PSX Data Portal now lists every Sukuk and stock eligible for Shariah compliance.
Farrukh H. Sabzwari, Managing Director and Chief Executive Officer of the PSX, said, "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 claimed that investor accounts have surpassed 650,000, with Millennials and Generation Z driving much of the new participation.
The platform is expected to attract more investors from Pakistan’s predominantly Muslim population, according to Sabzwari.
Imtiaz Haider, Commissioner of the SECP, said, "With a significant proportion of listed equity securities and mutual fund assets already Shariah-compliant, this initiative will help broaden market participation, create new opportunities for investors and the brokerage industry, and further strengthen investor confidence in Shariah-compliant investment options." Dr. Tariq Naseem, Head of Islamic Finance at the SECP, stated that next steps include expanding digital retail Sukuk and introducing Shariah-compliant tools for risk management and liquidity.
Naseem also noted plans to strengthen the legislative framework for Islamic financial services.
