Islamabad, September 1, 2025 : The Securities and Exchange Commission of Pakistan (SECP) has directed its licensed entities to promote Shariah-compliant intermediation services, in line with the constitutional objective of eliminating interest from the financial system.
Shariah-compliant institutional investors under SECP’s purview will be required to increase their securities trading through Shariah-compliant brokers. This will affect Takaful operators, Window Takaful operators, and other Shariah-compliant licensed entities, including NBFCs, investment schemes, pension plans, Modarabas, private funds, and securities brokers.
By December 31, 2025, these investors must formulate an internal policy. Starting March 31, 2026, quarterly progress reports, including impediments in implementation, must be submitted. They must also include at least one Shariah-compliant broker in their approved panel by June 30, 2026.
From July 1, 2026, to June 30, 2027, at least 20% of their securities trading must be routed through Shariah-compliant brokers. The commission will then determine the future course of action based on individual entity and sector progress.
All Shariah-compliant licensed entities are urged to utilize Takaful for insurance and Shariah-compliant asset management for investments.
The SECP has also advised the Pakistan Stock Exchange (PSX) to develop Shariah-compliant trading systems and raise awareness about Shariah-compliant brokerage services. The PSX should work with Trading Rights Entitlement Certificate (TREC) holders to enable them to offer such services, either through conversions, subsidiaries, or dedicated operations.
The Central Depository Company, in collaboration with the State Bank of Pakistan, should feature Shariah-compliant brokers on digital platforms like Easy Connect, Emlak Financials, and Islamic banking apps
