PSX opens a Shariah trading counter: 39 brokers, no short selling or MTS, Murabaha financing instead

The Pakistan Stock Exchange (PSX) launched a Shariah-compliant trading counter on Thursday 29 October 2026, a separate market window where investors can buy only Shariah-eligible shares, Government Ijarah Sukuk and corporate sukuk. It opened after the Securities and Exchange Commission of Pakistan (SECP) approved the Shariah Trading Counter Regulations, Business Recorder reported from the exchange's press release.

How the PSX Shariah trading counter works

The counter is enforced by the trading system itself, not left to the investor to check. On it:

• Only Shariah-compliant securities can be traded. Non-compliant shares are blocked.
• No short selling and no derivatives.
• No interest-based leverage. The Margin Trading System (MTS) is switched off for these accounts.
• Murabaha Share Financing (MSF) is offered as the Islamic alternative for investors who want to buy on credit.
• Purification: investors can sell holdings that later become non-compliant to clean their portfolio.

PSX has also added a Shariah Portal to its Data Portal that lists every Shariah-eligible stock and sukuk, so a reader can check a company before buying.

Who can trade and through which brokers

The counter is open to retail and institutional investors. 39 brokers have been onboarded to offer it through Islamic windows, and two brokerage houses are licensed as full-fledged Shariah-compliant brokers, the exchange said. New investors can open an account, including the low-documentation Sahulat Account, using a Shariah-compliant version of the Customer Relationship and Risk Disclosure Document.

What the PSX and SECP said

PSX Managing Director and CEO Farrukh H. Sabzwari said the counter gives investors a dedicated environment backed by system-based compliance controls, and that PSX investor accounts have crossed 650,000, with millennials and Generation Z behind much of the growth.

SECP Commissioner Imtiaz Haider said a significant share of listed equities and mutual fund assets are already Shariah-compliant. Dr Tariq Naseem, the SECP's head of Islamic finance, said the next steps are more digital retail sukuk, Shariah-compliant liquidity and risk tools, and a stronger legal framework for Islamic financial services.

What it means for you

Until now, a Pakistani investor who wanted to avoid interest and non-compliant businesses had to screen stocks themselves or rely on Islamic mutual funds. The counter moves that screening into the system: if your account is on it, you cannot buy a blocked share by mistake or take an MTS loan.

Before you open an account:

1. Ask your broker whether it is one of the 39 on the Shariah counter, or one of the two fully Islamic brokers.
2. Check the stock on the PSX Shariah Portal before buying.
3. Read the Murabaha financing terms, which carry a profit margin rather than interest.
4. Keep an eye on taxes: dividends and capital gains are taxed the same way on both counters. Our capital gains tax calculator works out what you owe on a sale.

The KSE-100 closed at 167,193 on Thursday, up 1,456.7 points (0.88%), per Business Recorder; follow it on our KSE-100 data page.