KMI-30 Index
The KMI-30 is the Pakistan Stock Exchange's benchmark for Shariah-compliant stocks — 30 companies that pass Islamic screening, weighted by free-float market capitalisation.
The KMI-30 Index — the KSE-Meezan Index — is the Pakistan Stock Exchange's benchmark for Shariah-compliant equities. It tracks 30 companies that pass Islamic screening criteria and was created jointly by the PSX and Al Meezan Investment Management. It was introduced in 2008 with a base period of June 2008.
What makes a company Shariah-compliant
Before a company can enter the KMI-30, it has to clear two layers of screening overseen by a Shariah advisory board:
- Business screening. The company's core business must be permissible (halal). Companies whose main activity is conventional interest-based banking, alcohol, gambling, tobacco, or other non-compliant lines are excluded.
- Financial screening. Even a permissible business must keep within limits on interest-based debt, interest income, and illiquid-versus-liquid assets. A company that relies too heavily on interest-bearing borrowing or earns too much from interest is screened out.
Among the companies that pass screening, the 30 largest by free-float market capitalisation form the index. Like the other PSX benchmarks, the KMI-30 is recomposed twice a year, and compliance is re-checked at each review — a company can drop out if its finances drift outside the limits.
KMI-30 vs KSE-30
| Feature | KMI-30 | KSE-30 |
|---|---|---|
| Filter | Shariah screening | Liquidity |
| Companies | 30 compliant | 30 most liquid |
| Weighting | Free-float market cap | Free-float market cap |
| Rebalanced | Semi-annually | Semi-annually |
Testing a Shariah-focused strategy
If you want to trade only Shariah-compliant names, the KMI-30 constituents are a natural starting universe. On PSX Algos you can build and backtest a strategy and then focus it on the names you care about, so your testing reflects the stocks you would actually trade.
Build a strategy →Frequently asked
What is the KMI-30 Index?
It is the Pakistan Stock Exchange's benchmark for Shariah-compliant stocks. It tracks 30 companies that pass Islamic business and financial screening, weighted by free-float market capitalisation.
How is a company judged Shariah-compliant for the KMI-30?
A company must pass business screening (its core activity must be permissible) and financial screening (limits on interest-based debt, interest income, and asset composition). The screening is overseen by a Shariah advisory board and rechecked at each semi-annual review.
What is the difference between the KMI-30 and the KSE-30?
Both track 30 companies weighted by free float, but the KMI-30 filters for Shariah compliance while the KSE-30 filters for liquidity. A company can be in one and not the other.
Who created the KMI-30 Index?
It was created jointly by the Pakistan Stock Exchange and Al Meezan Investment Management, and introduced in 2008.