Shariah-compliant stocks on PSX: how screening works, with a live list
How a PSX company is screened as Shariah-compliant, the KMI-30 and KMI All Shares indices, PSX's Shariah trading counter, and a live list of the largest Shariah-compliant companies with their P/E and dividend yield.
By the Nafa team · Updated · 4 min read
For many investors in Pakistan, whether a company is Shariah-compliant decides whether they will own it at all. PSX has one of the most developed Islamic equity markets in the world, with its own indices, screening and, since October 2026, a separate trading counter. This guide explains how compliance is decided and lists the largest compliant companies today.
How a company is screened
A company has to pass two kinds of test: what it does, and what its accounts look like.
What the business does
A company is excluded if its main business is not permissible, for example:
- conventional, interest-based banking and insurance
- alcohol, tobacco or pork
- gambling
- adult entertainment
This is why conventional banks, which carry a large weight in the KSE-100, are absent from Shariah indices, and why those indices look quite different from the wider market.
What its accounts show
A permissible business also has to pass financial tests, worked out from its latest accounts. The main ones used for PSX's KMI indices are:
- Interest-bearing debt below 37% of total assets.
- Investments that aren't Shariah-compliant below 33% of total assets.
- Income from non-compliant sources below 5% of total revenue.
- Illiquid assets (such as plant and inventory) at least 25% of total assets.
- Net liquid assets per share below the share price.
The tests are repeated as companies publish new accounts, so a company can move in or out of compliance as its balance sheet changes.
The KMI indices
- KMI-30 follows the 30 largest, most heavily traded Shariah-compliant companies, weighted by free-float market cap with a limit on any one company's weight. It is the benchmark for Islamic equity funds. The list is reviewed twice a year.
- KMI All Shares covers every Shariah-compliant company on PSX, however small or thinly traded.
See the KSE-100 explained for how these sit alongside PSX's other indices.
PSX's Shariah trading counter
In October 2026, after the SECP approved its regulations, PSX opened a separate Shariah-compliant trading counter. Only Shariah-compliant shares and sukuk trade there, through brokers' dedicated Islamic windows or brokers licensed to work only in Shariah-compliant business. Short selling, derivatives and interest-based borrowing to buy shares are not allowed on the counter; Murabaha share financing is offered instead.
You don't need the counter to buy Shariah-compliant shares: they also trade on the regular market. The counter is for investors who want the whole trade, including how it is financed, kept within Shariah rules.
The largest Shariah-compliant companies on PSX
The 30 largest Shariah-compliant companies on PSX by market cap, companies worth at least Rs 2 billion. Shariah status is as marked in the Ticker Analysts data. Screening results change when companies publish new accounts, so confirm a company against the latest KMI All Shares Index list before relying on it. Prices are from the session of 13 Nov 2026. Source: Pakistan Stock Exchange data via Ticker Analysts. Ratios are from each company’s latest filings and are refreshed daily.
This list is a starting point for research, not a recommendation to buy or sell. Investing in securities involves risk, including possible loss of principal.
Sectors where many companies pass the screening include fertiliser, cement, oil and gas exploration, technology, and food and consumer goods. Each sector page on Nafa lists its companies, and every stock page shows whether the company is marked Shariah-compliant.
Things to keep in mind
- Compliance changes. A company that takes on debt or changes its business can drop out at the next review. Check the latest KMI All Shares list before relying on a company's status.
- Dividend purification. Even a compliant company may earn a small share of its income from non-compliant sources. Many investors give away that portion of their dividends; a Shariah adviser can explain how it is worked out.
- Compliant isn't the same as a good investment. Being compliant says nothing about whether a share is cheap or the business is sound. The same research applies: profits, debt, cash flow and price. See how to read PSX financial statements.
Shariah status on this page and on Nafa's stock pages comes from the data described under the table. It is not a formal Shariah ruling; for a decision that depends on one, consult a qualified Shariah adviser.
