 | |
| Formerly | Karachi Stock Exchange Limited |
|---|---|
| Company type | Stock exchange |
| PSX | |
| Founded | 18 September 1947 (as Karachi Stock Exchange) |
| Headquarters | Karachi-74000 , |
Key people | Farrukh H. Sabzwari(CEO and Managing Director) Adnan Asad(Independent Director) |
| Revenue |  Rs. 3.114 billion (US$11 million) (2024) |
| Rs. 1.11 billion (US$4.0 million) (2024) | |
| Total assets | Rs. 14.189 billion (US$51 million) (2024) |
| Total equity | Rs. 11.439 billion (US$41 million) (2024) |
| Owners | China Financial Futures Exchange (17%) Shanghai Stock Exchange (8%) Shenzhen Stock Exchange (5%) Pak China Investor Company (5%) Habib Bank Limited (5%) |
Number of employees | 223 (2024) |
| Website | psx dps |
| Footnotes / references Financials as of 31 December 2024[update][1] | |
| Coordinates | 24°50′50.7″N66°59′53.9″E / 24.847417°N 66.998306°E /24.847417; 66.998306 |
|---|---|
| Currency | Pakistani rupee (₨) (PKR) |
| No. of listings | 525(December 2024)[2] |
| Market cap | Rs. 14.495 trillion (US$52 billion)(December 2024)[2] |
| Indices | KSE 100 Index KSE-30 Index KSE ALL Index KMI 30 Index KMI ALL Index |
ThePakistan Stock Exchange (PSX), founded asKarachi Stock Exchange (KSE) in 1947, is astock exchange based inKarachi,Pakistan.[3] In January 2016, the Karachi Stock Exchange merged with theLahore Stock Exchange andIslamabad Stock Exchange to form the PSX, aiming to reduce market fragmentation and attract strategic investment partnerships.[4][5][6]
As of September 2025, PSX lists 525 companies with a totalmarket capitalization of approximately PKR 18.276 trillion (about $64.83 billion USD).[7] The benchmarkKSE 100 Index reached 156,181 Points, reflecting a 51.7% increase from the previous year.[8][7] The exchange has 1,886foreign institutional investors, 883 domestic institutional investors, around 220,000 retail investors, 400 brokerage houses, and 21 asset management companies.[2]
The PSX was granted affiliate status by theWorld Federation of Exchanges (WFE) after it joined in June 2021, marking a significant milestone in its international recognition.[9][10] PSX has been ranked byBloomberg as one of the best-performing markets globally in 2023, 2024, and 2025.[11][12][13]
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The Karachi Stock Exchange (KSE) was founded on 18 September 1947, soon after Pakistan's independence. It was located in the Stock Exchange Building (SEB) on Stock Exchange Road, offI. I. Chundrigar Road (then McLeod Road), the heart ofKarachi’s financial district.[14] Membership at the KSE was capped at 200, with each member holding a trading card.[15] The value of these cards fluctuated sharply, climbing from just over one million rupees before 1990 to nearly 40 million rupees in the mid-1990s, before falling to around 27.5 million rupees by 2002.[15]
Until 27 May 1998, trading at the KSE relied on theopen outcry system, with buyers shouting "La-oo" and sellers responding "Lay."[15] The influx of foreign investors during the early 1990s highlighted the need for modernization. With the support of a US$125 million loan from theAsian Development Bank for capital market reforms, the KSE introduced the Karachi Automated Trading System (KATS), replacing manual trading with electronic execution.[15]
In 1999, theSecurities and Exchange Commission of Pakistan (SECP) was created to regulate the country’s capital markets.[16] Khalid Mirza became its first chairman in March 2000.[17] At that time, the KSE suffered from widespreadmarket manipulation, poor governance, and weak investor protection. Despite a market capitalization of only US$6 billion, the exchange was prone to extremevolatility, with most activity concentrated in just 30 of its 765 listed companies.[17] Malpractices included diversion of funds, absence of proper margin requirements, andpredatory lending by brokers.[17] Commercial banks often lent to brokers who engaged in "cornering," further disadvantaging small investors.[17] Corporate governance was also weak: shareholder meetings were frequently delayed, and many firms opted to delist or liquidate assets, eroding investor confidence.[17]
Mirza’s reform agenda faced strong pushback from entrenched brokerage interests. Brokers staged demonstrations against SECP measures and accused him of being an "American agent."[17] Although the SECP reduced broker dominance on the KSE’sboard of directors, they still controlled 60 percent of seats.[17] The Commission also gained authority to regulate auditors, but penalties for misconduct remained low at only US$30 per offense.[17] Transparency and accountability thus remained limited through the early 2000s.[17]
On 14 December 1999, the SECP introduced the Companies (Buy-back of Shares) Rules, 1999, providing a legal framework for corporate share repurchases. In 2002, Alhamd Textile Mills became the first Pakistani company to buy back shares under the new rules.[18]
The Pakistan Stock Exchange (PSX) was established in January 2016 following theGovernment of Pakistan’s decision to merge the three main stock exchanges of Karachi, Lahore, and Islamabad into a single national bourse.[19] A two-day mock trading session was conducted by theKarachi Stock Exchange before the official launch on 11 January 2016. The merger was intended to reduce market fragmentation, improve regulatory oversight, and strengthen the case for strategic partnerships to bring in technological expertise and international investors.[19] It marked the second phase of the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012, passed by a joint session of theParliament of Pakistan.[20]
In 2017, a consortium of Chinese exchanges including theShanghai Stock Exchange,Shenzhen Stock Exchange, and theChina Financial Futures Exchange acquired a 40% strategic stake in PSX, making China its single largest foreign shareholder.[21] Through this partnership, PSX was linked with Chinese capital markets under the "China Connect" system, enabling greater cross-border investment flows.[21]: 155
By December 2024, the exchange had 525 listed companies with a combinedmarket capitalization of approximately PKR 14.5 trillion.[22] The exchange operates several key indices, including theKSE 100 Index,KSE-30 Index, andKMI 30 Index, which are widely used benchmarks for market performance in Pakistan. Net number of companies do vary after excluding the list of companies which are non-compliant or de-listed.
The Pakistan Stock Exchange operates as a demutualised entity under the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012. Its ownership is divided between shareholders, brokers, and strategic investors, with theSecurities and Exchange Commission of Pakistan (SECP) acting as the primary regulator.[23]
PSX offers trading across multiple asset classes, including equities, corporate debt instruments, government securities, exchange-traded funds (ETFs), futures, and derivatives.[24] Trading is conducted electronically through the Karachi Automated Trading System (KATS), which provides nationwide connectivity.
Clearing, settlement, and custodial services are provided through theCentral Depository Company of Pakistan (CDC) and theNational Clearing Company of Pakistan (NCCPL).[25] Settlement typically takes place on a T+2 basis, in line with international practice.[26]
PSX’s benchmark indices include:
Trading hours are Monday to Friday, with pre-open, regular, and post-close sessions. The exchange has also adopted circuit breakers and volatility controls in line with international best practices.[27]
The Pakistan Stock Exchange is regulated by theSecurities and Exchange Commission of Pakistan (SECP), which supervises capital markets and protects investors.[28] TheState Bank of Pakistan oversees financial stability and regulates banks involved in capital market activities.[29]
PSX was demutualized under the Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012, transforming it into a for-profit company with separated ownership and management.[30] The exchange operates a surveillance department to monitor trading, detectmarket manipulation, and enforce corporate governance. It also follows international standards through membership in theWorld Federation of Exchanges and alignment withInternational Organization of Securities Commissions principles.[31]
Notable companies in which PSX ownscontrolling or significantminority stakes include:
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