The Shariah-compliant Trading Counter is a dedicated, segregated trading platform at PSX on which only Shariah-compliant securities trade, operated end-to-end on Islamic principles. It gives faith-conscious investors a single platform to trade with the assurance that the securities, the brokerage and the trading mechanism are all Shariah-compliant — removing the need to screen each trade themselves.

How it works

• Eligible securities — Shariah-compliant stocks, Shariah-compliant ETFs, Shariah-compliant REITs and Sukuks are traded on the counter.
• Shariah-compliant brokerage — orders are routed through brokers offering Shariah-compliant account services.
• Shariah policy — the counter is aligned with the SECP Guidelines and PSX Regulations. The procedure for Shariah-compliant trading can be accessed here.

To trade the Shariah-compliant way end-to-end, the brokerage account itself should be operated on Islamic principles. Brokers (TREC holders) can offer Shariah-compliant brokerage services through three recognized pathways:

The list of brokers offering Islamic services can be accessed from here.

PSX maintains four Islamic indices that track the compliant universe at different depths. The methodology and screening criteria can be found below:

An Exchange Traded Fund (ETF) is a ready-made basket of securities that trades on the Exchange like a single share. More details regarding ETFs can be found here.

What makes an ETF Shariah-compliant?

• It tracks a Shariah-compliant index, so every underlying holding has passed the Shariah screening and is Shariah-compliant.
• It has a Shariah advisor who oversees the fund and certifies compliance.

A Real Estate Investment Trust (REIT) pools investor money to own or develop income-producing property, listing its units on the Exchange. It gives real-estate exposure with the liquidity of a listed security and SECP/CDC oversight, without buying property directly. A REIT is Shariah-compliant when its structure, its property, income and financing all meet Islamic principles, which is certified by the REIT's appointed Shariah advisor under the SECP's REIT framework.

Below are the listed Shariah-compliant REITs:

Sukuk are the Islamic alternative to conventional bonds: instead of paying interest, they give the holder a share in a real underlying asset or project and the income it generates. PSX lists both Government of Pakistan Sukuk and Corporate Sukuk, offering Shariah-compliant fixed-income exposure to retail and institutional investors.

A Modaraba is one of the oldest forms of Islamic business partnership. In a Modaraba, one party provides the capital and the other provides the management and expertise, and they share the profits in an agreed ratio. Any loss is borne by the investors who provided the capital (not the manager), in line with Islamic principles — returns come from a real, productive business, never from interest.

At PSX, currently 24 Modarabas are listed operating across sectors such as leasing, financing, trading and manufacturing.

How they stay Shariah-compliant

• A Religious Board (at the regulator) and the Modaraba's own Shariah advisor oversee compliance.
• They are regulated under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, administered by the SECP (Registrar of Modarabas).
• For investors, a Modaraba offers a way to earn halal returns from a professionally managed business, with the transparency and liquidity of a listed security.

Murabaha Share Financing is the Shariah-compliant way to finance share purchases at PSX — the Islamic alternative to conventional, interest-based margin financing. It is Pakistan's first Shariah-compliant leveraged market product, operated by the National Clearing Company of Pakistan (NCCPL).

Instead of lending money at interest, MSF works on the Islamic Murabaha (cost-plus sale) principle: the financier purchases the shares and sells them to the investor at a pre-agreed, disclosed mark-up, payable over a set term. The return comes from a real sale transaction, not from interest, which keeps the financing Shariah-compliant.

For eligible securities, rates and full details, see NCCPL's Murabaha Share Financing page: NCCPL — Murabaha Share Financing.

Shariah screening methodology

A share is judged on two tests. Both must be satisfied for the company to be classed as Shariah-compliant.

1. Business Screen

The company's core business must be Shariah-permissible. Companies whose main activity is conventional banking or insurance, interest-based financial services, alcohol, tobacco, pork, gambling, conventional media/entertainment, arms for impermissible use or any other business not permitted under Shariah principles are excluded outright.

2. Financial Screens

A company passing the business screen must also stay within the following financial limits, applied under the SECP-approved methodology used by the Shariah advisor:

PSX established its Shariah Focus Group in December 2023 to widen access to Shariah-compliant products and advisory. It brings together Shariah scholars from different schools of thought with Islamic-finance practitioners and capital-market experts, so each perspective is reflected in product development. Details about the Shariah Focus Group can be found here.