What are Shariah compliant stocks?

Shariah compliant stocks are shares of companies that meet Islamic financial guidelines. These companies avoid interest-based income (riba), gambling, alcohol, tobacco, and other prohibited activities. In Pakistan, the Shariah Advisory Board of the Securities and Exchange Commission of Pakistan (SECP) maintains an approved list of Shariah compliant securities.

How to find Shariah compliant stocks on PSX?

You can use FalahFlow's Shariah screening toggle to filter only Shariah compliant stocks on PSX. The KMI-30 Index and KMI All Share Index track Shariah compliant companies. Each stock page on FalahFlow shows a Shariah compliance badge.

What is the KMI-30 Index?

The KMI-30 (KSE Meezan Index 30) is a stock market index on PSX that tracks the 30 largest Shariah compliant companies by free-float market capitalization. It was jointly developed by PSX and Meezan Bank.

Are banking stocks Shariah compliant?

Most conventional banking stocks (like HBL, MCB, UBL) are NOT Shariah compliant because banks earn significant income from interest (riba). However, Islamic banks like Meezan Bank (MEBL) and BankIslami (BIPL) are Shariah compliant.

Which sectors have the most Shariah compliant stocks on PSX?

Cement, Oil & Gas, Fertilizer, Power Generation, Pharmaceuticals, and Technology sectors have the highest concentration of Shariah compliant stocks on PSX. Banking and Insurance sectors are generally not Shariah compliant.

Is it halal to invest in PSX?

Yes, investing in the Pakistan Stock Exchange is halal if you invest only in Shariah compliant stocks. Use FalahFlow to screen stocks for Shariah compliance and avoid companies involved in prohibited activities.

Islamic Investing

Shariah Compliant Stocks on Pakistan Stock Exchange

Find halal investment opportunities on PSX. Below are popular Shariah compliant stocks across different sectors. Use FalahFlow's Shariah screening toggle on the Market Overview page to filter the full list in real-time.

What Makes a Stock Shariah Compliant?

A stock is considered Shariah compliant on PSX when the company meets these criteria set by the Securities and Exchange Commission of Pakistan (SECP):

Business Activity — The company's core business must not involve haram activities (interest, gambling, alcohol, tobacco, weapons, etc.)
Debt Ratio — Total interest-bearing debt must be less than 37% of total assets
Interest Income — Non-compliant income must be less than 5% of total revenue
Liquid Assets — Illiquid assets must be at least 20% of total assets

Popular Shariah Compliant Stocks on PSX

Symbol	Company Name	Sector	Status
LUCK	Lucky Cement Limited	Cement	✓ Halal
ENGRO	Engro Corporation Limited	Fertilizer	✓ Halal
EFERT	Engro Fertilizers Limited	Fertilizer	✓ Halal
MARI	Mari Petroleum Company Limited	Oil & Gas	✓ Halal
SYS	Systems Limited	Technology	✓ Halal
FFC	Fauji Fertilizer Company Limited	Fertilizer	✓ Halal
DGKC	D.G. Khan Cement Company Limited	Cement	✓ Halal
MLCF	Maple Leaf Cement Factory Limited	Cement	✓ Halal
CHCC	Cherat Cement Company Limited	Cement	✓ Halal
PIOC	Pioneer Cement Limited	Cement	✓ Halal
KOHC	Kohat Cement Company Limited	Cement	✓ Halal
FCCL	Fauji Cement Company Limited	Cement	✓ Halal
OGDC	Oil & Gas Development Company	Oil & Gas	✓ Halal
PPL	Pakistan Petroleum Limited	Oil & Gas	✓ Halal
POL	Pakistan Oilfields Limited	Oil & Gas	✓ Halal
HUBC	Hub Power Company Limited	Power	✓ Halal
KEL	K-Electric Limited	Power	✓ Halal
SEARL	Searle Company Limited	Pharmaceuticals	✓ Halal
AGP	AGP Limited	Pharmaceuticals	✓ Halal
ILP	Interloop Limited	Textile	✓ Halal

This is not an exhaustive list. Use the Shariah filter toggle on FalahFlow to see all Shariah compliant stocks in real-time.

Common Stocks That Are NOT Shariah Compliant

The following popular stocks are generally NOT Shariah compliant due to their involvement in interest-based banking:

Symbol	Company Name	Sector	Status
HBL	Habib Bank Limited	Banking	✗ Non-Halal
MCB	MCB Bank Limited	Banking	✗ Non-Halal
UBL	United Bank Limited	Banking	✗ Non-Halal
BAHL	Bank AL Habib Limited	Banking	✗ Non-Halal
NBP	National Bank of Pakistan	Banking	✗ Non-Halal

Shariah Compliance by Sector on PSX

Mostly Shariah Compliant

• Cement (LUCK, DGKC, MLCF, CHCC, KOHC, PIOC)
• Oil & Gas (OGDC, PPL, POL, MARI)
• Fertilizer (EFERT, FFC, ENGRO)
• Power (HUBC, KEL, KAPCO)
• Technology (SYS, TRG, NETSOL)
• Pharmaceuticals (SEARL, AGP, HINOON)

Generally NOT Shariah Compliant

• Conventional Banking (HBL, MCB, UBL, BAHL, NBP)
• Insurance (JSGCL, AICL, EFUG)
• Leasing Companies
• Tobacco (PAKT)

Disclaimer

Shariah compliance status is based on the latest available screening data from SECP and Shariah advisory boards. Compliance status may change periodically. Always verify with your Shariah advisor before making investment decisions. This page is for educational purposes only and does not constitute financial or religious advice.