Shariah-Compliant Stock
A stock that passes Islamic finance screening — both on the nature of its business and on a set of financial ratio tests — and is included on the officially published list of Shariah-compliant PSX securities.
Shariah screening in Pakistan is typically done in two stages. First, a business-nature screen excludes companies whose core activity is impermissible (conventional banking/insurance, alcohol, gambling, and similar). Second, companies that pass that screen are tested against financial ratio thresholds — commonly covering interest-bearing debt relative to assets, income earned from interest-based sources, and holdings of illiquid/non-compliant assets — reviewed periodically as the underlying financial statements change.
The "Shariah" badge shown on StockPulse reflects PSX's own officially published list of Shariah-compliant securities — StockPulse does not run this screening independently, so the badge changes only when that published list is updated, not in real time as a company's financials shift.
KMI-30 (see KSE-100/KSE-30/KMI-30) is the benchmark index built specifically from the largest Shariah-compliant stocks.