Pakistan Stock Exchange
What is the KMI-30 index?
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Short answer
The KMI-30 is the Pakistan Stock Exchange's index of 30 Shariah-compliant companies, chosen by free-float market capitalisation and liquidity after passing Shariah screening for business type, interest-bearing debt, non-compliant income and assets. It was launched in 2008 with Meezan Bank as its Shariah adviser, and is the main benchmark for Islamic equity funds in Pakistan.
How a company gets in
Every listed company is first screened. Its core business must be permissible — conventional banks, insurance, alcohol, gambling and similar businesses are excluded. It must then pass financial ratio tests on its latest audited accounts. The 30 largest companies by free-float market capitalisation that pass and meet liquidity requirements make up the KMI-30; every company that passes is included in the broader KMI All Share Index.
The Shariah screening ratios
| Test | Limit (historical KMI-30 brochure) | 2026 change |
|---|---|---|
| Interest-bearing debt to total assets | Less than 37% | SECP lowered the cap to 33% for the KMI All Share Index in 2026 and asked PSX to consider 30% |
| Non-compliant investments to total assets | Less than 33% | — |
| Non-compliant income to total revenue | Less than 5% | — |
| Illiquid assets to total assets | At least 25% | — |
| Market price per share | At least net liquid assets per share | — |
Recomposition
PSX recomposes the KMI-30 twice a year based on companies' latest financial results and the Shariah status supplied by its Shariah adviser. The latest recomposition at the time of writing used accounts as of 31 December 2025. A company that takes on too much debt or earns too much interest income can drop out, so a stock that was compliant last year may not be compliant now.
Purification of dividends
Even compliant companies may earn a small share of income from non-compliant sources (below the 5% limit). Islamic investors are advised to give that proportion of their dividends to charity — this is called purification. Islamic mutual funds calculate and do this automatically.
How to invest in KMI-30 companies
- Buy individual KMI-30 shares through any PSX broker — the current list is on the PSX website.
- Invest in an Islamic equity mutual fund or Islamic index fund regulated by the SECP.
- Check an exchange-traded fund (ETF) that tracks a Shariah index, if one is listed when you invest.
Roman Urdu mein jawab
KMI-30 index kya hai?
KMI-30 PSX ka index hai jis mein 30 bari Shariah-compliant companies hoti hain. Companies ka business, sood wala qarz, ghair-shari aamdani aur assets check hote hain. 2026 mein SECP ne qarz ki had 37% se kam karke 33% kar di. Har company jo screening pass kare woh KMI All Share Index mein hoti hai.
Frequently asked questions
What is the difference between KMI-30 and KSE-100?
KSE-100 is the main benchmark of 100 large companies regardless of Shariah status, including conventional banks. KMI-30 contains only 30 companies that pass Shariah screening.
What is the KMI All Share Index?
It includes every PSX-listed company that passes Shariah screening, not just the top 30. It is the best list to check whether a particular share is compliant.
Are all KMI-30 stocks halal?
They pass PSX's Shariah screening at the last recomposition, which follows widely used standards. Scholars still advise purifying the small non-compliant part of dividends, and status can change at the next review.
Who is the Shariah adviser of KMI-30?
The index was launched in 2008 in partnership with Meezan Bank, which acted as its Shariah adviser. PSX recompositions refer to the Shariah status supplied by its partner Shariah adviser.
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