PSX wins ‘Best Islamic Stock Exchange Award 2021’

KARACHI: The Pakistan Stock Exchange (PSX) has been awarded the Best Islamic Stock Exchange Award 2021 by the Global Islamic Finance Awards (GIFA), a statement said on Tuesday.

GIFA is an internationally respected platform, recognising excellence in banking and finance in the Islamic world.

Since 2011, the awards have been presented to individuals, institutions and government departments globally who have shown outstanding performance in promoting Islamic banking and finance and in terms of commitment to social responsibility.

GIFA is the only global Islamic finance awards programme, covering all parts of the world and includes all institutions and individuals who have contributed to the growth and expansion of Islamic banking and finance with the Shariah authenticity.

The Pakistan Stock Exchange has a robust platform for providing Shariah-compliant products, including dedicated Islamic indices, Shariah-compliant equities and debt instruments. It has listed modarabas and Islamic commercial banks, as well as products such as Islamic mutual funds and an ETF. It boasts of total listed capital of Shariah-compliant companies of Rs770 billion, making up 53 per cent of the total listed capital of all the listed companies.

The Pakistan Stock Exchange presents a strong product suite for the investors looking to invest according to the Islamic principles of finance. It is also a cost-effective and efficient platform for the Shariah-compliant companies to raise debt and equity capital, utilising Shariah compliant products.

PSX chairperson Dr Shamshad Akhtar said: “It is definitely an immense achievement for the Pakistan Stock Exchange to have won the Best Islamic Stock Exchange Award 2021 presented by the Global Islamic Finance Awards.

The Islamic equity and debt products form a large portion of the demand in the international capital markets. The PSX’s winning this accolade shows that it is a premium platform for listing and investing in Islamic capital market products,” She added,

“The winning of this award endorses that [the] 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 the PSX, and ensure furthering the PSX’s regulatory, operational, technological standards and products in providing diversified Islamic products and facilitating the Shariah-compliant equity and debt listings.”

PSX managing director Farrukh H Khan said: “[The] Pakistan Stock Exchange is truly honoured 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 [the] Pakistan Stock Exchange’s standing in the world of Islamic finance but of Pakistan, as well.”

“Both the 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 said.

“[The] Pakistan Stock Exchange boasts of total market capital of Shariah-compliant companies of Rs4.770 trillion, which makes up 57 per cent of the total market capital of all the listed companies as of June 30, 2021.”

“With Sukuks, an ETF, modarabas, mutual funds and equity listings that are Shariah-compliant, the PSX provides a viable and convenient conduit for capital raising for those who want to list their products and companies in accordance with the Shariah compliance. At the same time, the PSX presents an attractive avenue for investors who want to invest as per the Islamic principles of finance.”

“This award, which has been presented to the Pakistan Stock Exchange for the first time in the 10-year history of GIFA, is an international vote of confidence in the 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 honouring us with this award. None of this would have been possible without the great team at the PSX, support of the Securities and Exchange Commission of Pakistan (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 [the] PSX and Pakistan,” he added.

SECP chairman Aamir Khan felicitated the PSX, saying: “The PSX has made commendable strides over the last two years, and winning [the] “Best Islamic Stock Exchange Award 2021” is a testament to its efforts in promoting Islamic products and offerings in the capital market.

The SECP strongly supports the PSX’s continued efforts to serve a wider client base and meet the needs of the Shariah-conscious issuers and investors.”