SECP Revises Shariah Screening Criteria for PSX-KMI All Share Index
On February 26, 2026, the Securities and Exchange Commission of Pakistan (SECP) approved revisions to the Shariah screening criteria for the PSX-KMI All Share Index, aligning the framework with global standards and Pakistan’s transition toward a riba-free financial system by 2027.
Key Changes
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Debt threshold reduced: Non-compliant debt-to-total assets ratio lowered from 37% to 33%.
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Star rating introduced: Companies will receive 3–5 star Shariah compliance ratings to enhance transparency.
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Five-day objection window: Published list will allow evidence-based revision requests.
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Interim inclusion: Newly listed companies may be added subject to screening approval.
SECP has also advised considering a further reduction in non-compliant investments to 30%, quarterly index updates, and automated data collection.
Overall, the move strengthens governance, improves investor clarity, and deepens Pakistan’s Islamic capital market.
