The Pakistan Stock Exchange has been awarded the Best Islamic Stock Exchange Award 2021 by the Global Islamic Finance Awards, which is a significant development on a global level, particularly in the Islamic world.
The Global Islamic Finance Awards (GIFA) is an internationally respected platform that recognizes excellence in banking and finance in the Islamic world. Since 2011, it has globally awarded individuals, institutions, and government departments for outstanding performance in promoting Islamic banking and finance and in terms of commitment to social responsibility.
The GIFA is the only global Islamic finance awards program that is worldwide and includes all the institutions and individuals that have contributed to the growth and expansion of Islamic banking and finance with Sharia authenticity.
The Pakistan Stock Exchange (PSX) has a robust platform for providing Shariah-compliant products, including dedicated Islamic indices, and Shariah-compliant equities and debt instruments. It has listed Modarabas and Islamic Commercial Banks, and products such as Islamic Mutual Funds and an ETF. It also boasts of the total listed capital of Shariah-compliant companies of Rs. 770 billion, making up 53 percent of the total listed capital of all the listed companies.
The PSX also presents a strong product suite for investors aiming to invest according to the Islamic principles of finance. It is a cost-effective and efficient platform for Shariah-compliant companies to raise debt and equity capital, using Shariah-compliant products.
Speaking at the occasion, the Chairperson of the PSX, Dr. Shamshad Akhtar, remarked, “It is definitely an immense achievement for the Pakistan Stock Exchange to have won the Best Islamic Stock Exchange Award 2021 presented by Global Islamic Finance Awards. Islamic equity and debt products form a large portion of the demand in international capital markets. PSX winning this accolade shows that it is a premium platform for listing and investing of Islamic capital market products”.
“The winning of this award endorses that PSX is heading in the right direction in terms of facilitating and providing Islamic capital market products and offerings. We intend to build on Islamic finance business at PSX, and ensure furthering PSX’s regulatory, operational, technological standards and products in providing diversified Islamic
products and facilitating Shariah-compliant equity and debt listings,” she said.
The Managing Director of the PSX, Farrukh H. Khan, said, ‘Pakistan Stock Exchange is truly honored and proud to win the Best Islamic Stock Exchange award 2021 under the auspices of the Global Islamic Finance Awards. This award is in fact a recognition not just of Pakistan Stock Exchange’s standing in the world of Islamic finance but of Pakistan as well. Both PSX and Pakistan have been working for many years to introduce Islamic modes of financing, in both the banking and capital markets. This has filled a real need of the financial sector customers. Today, Islamic financial products are the fastest growing in Pakistan”.
He added that the “Pakistan Stock Exchange boasts of total market capital of Shariah-compliant companies of Rs. 4,770 billion which makes up 57 percent of the total market capital of all listed companies (as of June 30th, 2021). With Sukuks, an ETF, Modarabas, Mutual Funds, and equity listings that are Shariah-compliant, PSX provides for a viable and convenient conduit for capital raising for those who want to list their products and companies in accordance with Shariah compliance. At the same time, PSX presents an attractive avenue for investors who want to invest as per Islamic principles of finance”.
Khan added, “This award, which has been presented to Pakistan Stock Exchange for the first time in the 10-year history of GIFA, is an international vote of confidence in PSX as a robust and active bourse, facilitating all types of companies and investors – whether Shariah-compliant or otherwise. We are proud of our achievements and sincerely thank GIFA for honoring us with this award. None of this would have been possible without the great team at PSX, support of SECP, the brokerage community, our board, and shareholders. And of course our listed companies and investors. We thank them all and look forward to continuing on this path of progress for PSX and Pakistan”.
The Chairman of the Securities & Exchange Commission of Pakistan (SECP), Aamir Khan, stated, “The PSX has made commendable strides over the last two years, and winning ‘Best Islamic Stock Exchange Award 2021’ is a testament to its efforts in promoting Islamic products and offerings in the capital market. SECP strongly supports PSX’s continued efforts to serve a wider client base and meeting the needs of Shariah conscious issuers and investors”.