Shariah-Compliant Stocks on PSX: The KMI Index Explained

Shariah-compliant investing follows Islamic finance principles. Stocks that pass screening criteria are included in the KMI (KSE Meezan Index), making it easy for Muslim investors to identify halal investment options.

What Makes a Stock Shariah-Compliant? The Shariah screening process evaluates companies on two main criteria: Business Activity (the company must not be involved in alcohol, pork, gambling, conventional banking, tobacco, pornography, or weapons) and Financial Ratios (total debt to total assets must be below 37%, non-compliant investments to total assets below 33%, and illiquid assets to total assets above 20%).

The KMI30 Index: The KSE Meezan 30 Index tracks the top 30 Shariah-compliant companies on PSX. It includes major names like AIRLINK, ATRL, CPHL, DGKC, EFERT, and others. The index is recomputed periodically as screening results change.

How to Identify Shariah-Compliant Stocks: On MunafaPlus, every stock in the KMI30 shows a green 'Shariah' badge in the Markets table. You can also use the /api/shariah-compliant endpoint to get the full list programmatically.

Important Note: Shariah compliance is determined by qualified Islamic scholars and the PSX. MunafaPlus only displays the KMI30 list — we do not perform our own screening. Always verify with your financial advisor for religious compliance.