Halal Stocks In Pakistan: A Complete Guide To Shariah Compliant Investing

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The best halal stocks in Pakistan are:

Mari Petroleum. A halal energy stock with strong earnings and 36.22% dividend yield.
Meezan Bank. Leading Islamic bank offering 9.05% dividend and low 5.57 P/E.
Fauji Fertilizer. Shariah-compliant with stable growth and 9.52% dividend yield.
Engro Corporation. Diversified halal stock paying 9.89% dividend with healthy valuation.
Lucky Cement. Cement sector stock with halal status and modest 0.85% yield.
Hub Power. Halal power stock delivering a high 11.55% dividend return.

As more Muslims in the country look to invest responsibly, aligning financial activity with religious beliefs has become a growing priority. Fortunately, there is a wide range of halal stocks in Pakistan available through the Pakistan Stock Exchange. This makes it easier to participate in the market without compromising one’s ethics. In this guide, we walk you through how to access the list of eligible companies and how to create a portfolio that matches both your investment strategy and your personal values. We will also differentiate between conventional and halal stocks.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

What are Shariah compliant stocks and why should you care?

Shariah compliant stocks are shares of companies that meet specific Islamic guidelines regarding business activity, financial structure, and ethical practices. These companies avoid industries such as alcohol, gambling, conventional banking, and weapons. But what truly sets these apart isn’t just exclusion, it’s about balance. For example, even a tech company might be screened out if too much of its income comes from interest-based investments or it holds excessive debt. That’s why Shariah compliant stocks in Pakistan are selected using both sector-based filters and financial ratios, which are constantly updated.

A lesser-known feature of Islamic shares in Pakistan is the use of purification ratios. If a company passes the initial Shariah screening but earns a small portion of income from non-compliant sources like interest, the investor is required to “purify” that portion by giving it away as charity. This concept is rooted in Islamic finance ethics, which emphasizes cleansing wealth from impermissible elements. It’s not just a checkbox rule, some fund managers even publish purification amounts per share annually for transparency and ease.

Best Shariah compliant stocks in Pakistan (2025)

Below is a curated list of best Shariah-compliant stocks in Pakistan as of 2025, offering a balance of profitability, dividend yields, and sectoral diversity. These stocks are suitable for inclusion in halal portfolios and are frequently reviewed by certified Shariah screening bodies.

Best Shariah compliant stocks in Pakistan
Company	Ticker	Sector	Price (PKR)	Market Cap (PKR bn)	P/E (TTM)	Dividend Yield (%)
Mari Petroleum	MARI	Energy	637	768.97	9.95	36.22
Meezan Bank	MEBL	Islamic Banking	309.8	555.22	5.57	9.05
Fauji Fertilizer	FFC	Fertilizer	383.3	535.09	8.15	9.52
Engro Corporation	ENGRO	Conglomerate	485.4	~448	8.58	9.89
Lucky Cement	LUCK	Cement	356	521.5	3.88	0.85
Hub Power	HUBC	Power Generation	136.8	179.7	5.82	11.55

Mari Petroleum. A key player in Pakistan’s energy sector, Mari Petroleum is known for its exploration and production of oil and gas. The company enjoys a reputation for operational efficiency and consistent performance, making it a preferred pick for Shariah-compliant investors.
Meezan Bank. As the largest full-fledged Islamic bank in Pakistan, Meezan Bank leads the charge in ethical banking. It combines modern financial services with strict adherence to Shariah principles, making it a trusted choice among faith-driven investors.
Fauji Fertilizer. Backed by military-linked groups, Fauji Fertilizer is one of Pakistan’s most reliable producers of urea and DAP. Its stable business model, strong distribution network, and ethical screening make it suitable for halal-conscious portfolios.
Engro Corporation. A diversified conglomerate with interests spanning food, energy, and chemicals, Engro brings together innovation and scale. While its structure is complex, its major holdings generally align with halal investment screens.
Lucky Cement. One of Pakistan’s largest cement manufacturers, Lucky Cement supports infrastructure growth both domestically and in exports. Its core operations are widely considered compliant with Islamic finance norms.
Hub Power. A leading name in power generation, Hubco operates various thermal and renewable projects. Its straightforward revenue model from power purchase agreements appeals to halal-focused investors seeking consistent returns.

Top performing sectors for halal stocks in Pakistan

Certain industries naturally align with Shariah principles and offer promising investment opportunities:

Top performing sectors for halal stocks in Pakistan
Sector	Company (Ticker)	Price (PKR)	Market cap (PKR bn)	P/E (TTM)	EPS (TTM, PKR)	Dividend yield (%)
Energy	Mari Petroleum (MARI)	633.5	738.1	1.31	60.14	4.19
Energy	Pakistan Petroleum (PPL)	170.99	465.3	5.19	32.97	4.39
Fertilizer	Fauji Fertilizer (FFC)	383.9	537.9	8.14	61.15	9.91
Cement	Lucky Cement (LUCK)	356	524.4	1.32	49.11	0.85
Islamic Banking	Meezan Bank (MEBL)	310.99	559.9	5.62	NA	9.01
Technology	Systems Limited (SYS)	105.26	154.3	18.48	5.7	1.14

Shariah compliant vs сonventional stocks: what’s the difference?

Shariah compliant vs сonventional stocks
Criteria	Shariah compliant stocks	Conventional stocks
Interest (Riba) income	Forbidden	Allowed
Debt to equity ratio	Strictly limited	No restriction
Industry screening required	Yes	No
Compliance reviews	Regular	Optional

Where to find the official list of Shariah compliant stocks in Pakistan

Here’s what beginners really need to know about finding the list of Shariah-compliant stocks in Pakistan through a PDF download:

SECP issues an official guide. The Securities and Exchange Commission of Pakistan puts out a “Guidelines for Shariah-Compliant Investing” PDF, with the latest version from August 2022.
PSX hosts Islamic index PDF. Pakistan Stock Exchange provides an “All Shares Islamic Index” PDF listing about 241 Shariah-compliant firms, updated with each review.
Detailed screening criteria included. These files don’t just show company names; they explain rules about share holdings, debt limits, and how often stocks must trade to stay included.
SECP shares Shariah registers. You can download up-to-date registers for compliant companies, sukuk, REITs, and funds, the most recent ones show status as of December 2024.
Meezan Bank offers its own list. As a major Islamic finance player, Meezan publishes its own PDF with a detailed index of Shariah-approved stocks, making it easy to cross-check.
Dates matter. Each document notes when it was last updated, that’s handy to keep track of new or removed companies after index reviews.

How can you invest in halal stocks in Pakistan?

How to invest in Shariah compliant stocks in Pakistan

Here’s a simple process to begin your journey into Islamic stocks in Pakistan:

Open an Islamic brokerage account

Start by selecting a trusted broker that offers accounts structured according to Islamic principles. Make sure the account avoids any interest-based (riba) transactions and is designed to support Shariah-aligned trading practices.

Select your stocks

You can begin by exploring indices such as the KMI-30 or PSX-KMI All Share Index, which are useful guides for compliant investing. Digital platforms like the Islamicly app are also available to help you screen stocks more efficiently.

Diversify across sectors

Managing risk is key in any investment strategy. Try to allocate your funds across different industries so that your portfolio remains balanced and less vulnerable to market shifts.

Ongoing compliance checks

Keep in mind that a company’s status may change over time. To maintain a portfolio of Shariah compliant stocks in Pakistan, it’s important to conduct regular reviews and remove any stocks that no longer meet the required ethical or financial criteria.

Other popular halal investment options in Pakistan

If you want to further diversify beyond stocks, the following are considered as the best options for halal investment in Pakistan:

Halal Investment Options in Pakistan.
Halal ETFs and Index Funds in Pakistan.
Halal Mutual Funds in Pakistan.
Sukuk Bonds in Pakistan.

Further, if you're interested in exploring Shariah-compliant investment options available globally, there are many platforms that offer services aligning with Islamic principles. These platforms are designed to avoid interest-based elements and ensure compliance with ethical finance standards. If that sounds like the right fit for you, explore the carefully selected list of halal investment platforms below and choose one that matches your goals.

Best brokers that offer Islamic account
	Currency pairs	Min. deposit, $	Regulation	TU overall score	Open an account
OANDA	68		FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	6.79	Open an account Your capital is at risk.
RockGlobal	50	200		1.95	Study review
Pepperstone	90		ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec	7.17	Open an account Your capital is at risk.
FOREX.com	80	100	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	6.95	Study review
Plus500	60	100	FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)	6.83	Open an account Your capital is at risk.

Double your halal stock rewards by using sector timing and zakat-aligned rebalancing

One smart way to level up your halal investing game is by following which sectors are heating up, but through a Shariah-friendly lens. Most people stick to the usual Islamic index lists, but there’s more to it. Look at sectors like fertilizers or tech that often pass Shariah filters and also ride strong economic waves. If you shift your investments based on which of these sectors are gaining momentum, you’ll likely see stronger returns while keeping everything faith-compliant.

Here’s something most investors don’t think about, rebalancing your halal portfolio in sync with your zakat schedule. Instead of the usual quarterly shuffle, making changes around your zakat date helps in two ways. It lets you clean up any stocks that are close to breaching compliance rules and also ensures your portfolio reflects your spiritual intentions. It’s a thoughtful move that blends financial clarity with religious purpose.

Conclusion

Halal stocks in Pakistan provide Muslim investors with a powerful way to grow their wealth while respecting Islamic investing principles. By carefully selecting Shariah compliant stocks in Pakistan and using tools like the PSX lists, you can create a portfolio that is both ethical and potentially profitable. With proper research, diversification, and regular reviews, Islamic investing becomes a viable path for long-term financial success.

FAQs

What happens if a stock in my portfolio becomes non-compliant later?

If a stock loses its Shariah compliance, it's recommended to sell it as soon as reasonably possible. Any income earned during the non-compliant period should ideally be purified by donating it to charity without the intention of reward.

Can I invest in Shariah compliant stocks using a regular brokerage account?

Technically, yes, but it’s not ideal. Regular accounts may involve interest (riba) in settlement or margin. An Islamic brokerage account helps ensure your trades remain free of interest and ethically structured.

Are dividends from Shariah compliant stocks always halal?

Mostly, yes, but some companies may have minor non-compliant income sources. To address this, a small portion of dividends may need purification. Check if your broker or fund manager provides per-share purification data.

Do Shariah compliant stocks offer growth potential or just stability?

They can offer both. Sectors like tech and manufacturing often provide strong growth, while dividend-rich stocks like energy or banking add stability. Halal investing isn't just ethical, it can be financially smart too.

Team that worked on the article

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

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