PSX Unveils New Index to Rank Pakistan’s Top Companies

The Pakistan Stock Exchange (PSX) has launched a public consultation on the country’s first Sustainability Index, a proposed benchmark designed to measure the environmental, social, and governance (ESG) performance of listed companies and promote sustainable investing.

In a statement issued on Monday, PSX released a concept paper outlining the proposed PSX Sustainability Index (PSI) and invited stakeholders to submit feedback by July 17, 2026. The exchange said the initiative marks an important step toward strengthening sustainable finance and improving ESG practices in Pakistan’s capital markets.

According to PSX, the index will identify listed companies that effectively manage financially material environmental, social, and governance risks and opportunities. The benchmark will use a total return methodology and apply sector specific weighting to ensure companies are assessed based on the ESG factors most relevant to their industries.

PSX Chief Executive Officer Farrukh Sabzwari said ESG considerations have become increasingly important in determining company valuations, capital allocation, and long term risk assessment. He said the proposed index aims to provide investors with a transparent and internationally comparable benchmark that recognizes companies building long term resilience.

The exchange said the index will benefit listed companies seeking greater visibility among responsible investors, while also providing institutional investors and asset managers with a credible benchmark for developing ESG focused investment products. It will also help investors identify companies with stronger sustainability practices and long term business models.

PSX said the consultation process is intended to ensure the index reflects Pakistan’s corporate landscape while encouraging gradual improvements in sustainability disclosures across industries. Stakeholders have been invited to submit written comments by July 17, after which the exchange will finalize the framework for the country’s first Sustainability Index.