Shariah-compliant stocks on PSX

They are shares of companies that pass a Shariah screening: their main business is permissible, and ratios such as interest-bearing debt, interest income and non-compliant investments are below set limits. On the Pakistan Stock Exchange, the companies that pass are included in the KMI All Share Islamic Index.

The KMI-30 is the PSX index of the 30 largest and most liquid Shariah-compliant companies, developed with Al Meezan Investment Management. It is reviewed twice a year, when companies can be added or removed.

Many scholars consider buying shares of Shariah-compliant companies permissible, as long as you avoid prohibited practices such as short selling and interest-based margin trading, and purify any small non-compliant income. Ask a qualified scholar about your own situation.

PSX updates the Shariah status of listed companies based on their financial statements, and recomposes the KMI-30 every six months. This page shows the lists as of the date above; check the PSX data portal for the latest status before you invest.

Islamic equity mutual funds and Islamic index funds invest in a diversified basket of Shariah-compliant stocks, managed by an asset management company. See the best Islamic equity funds ranked by return.