Understanding KMI-30 Shariah Screening Criteria at PSX

The Karachi Meezan Index (KMI-30) is the benchmark index for Islamic equities in Pakistan. To qualify for inclusion, a listed company must pass rigorous technical and religious filters established by certified Shariah scholars.

Key screening criteria include: (1) Core business must be permissible (Halal); (2) Total interest-bearing debt divided by total assets must not exceed 37%; (3) Non-compliant investments to total assets must be less than 33%; and (4) Non-permissible income must remain below 5% of gross revenue, with mandatory purification.