The Pakistan Stock Exchange (PSX) is the country’s only stock exchange, where shares of 535 main-board companies worth about Rs 19.83 trillion are traded. Its main index, the KSE-100, hit a record 189,167 points in January 2026 and stood at 164,467 on 27 October 2026. This guide explains how the Pakistan Stock Exchange works, who does what, how to start investing and what risks to keep in mind.
Last updated: 31 October 2026 by Ahmed.
Pakistan Stock Exchange at a Glance
| Figure | |
|---|---|
| Formed | January 2016, by merging the Karachi, Lahore and Islamabad stock exchanges |
| Listed companies | 535 on the main board and 5 on the GEM board (August 2026) |
| Market capitalization | Rs 19.83 trillion (August 2026) |
| Sectors | 37 |
| Main index | KSE-100: 164,467 on 27 October 2026; record 189,167 on 23 January 2026 |
| Regulator | Securities and Exchange Commission of Pakistan (SECP) |
| Settlement | T+1 since 9 February 2026 |
How the Pakistan Stock Exchange Works
Companies raise money by selling shares to the public in an initial public offering (IPO). After that, investors buy and sell those shares among themselves on PSX. Prices change all day based on supply and demand during trading hours.
| Body | Role |
|---|---|
| PSX | Runs the trading system, lists companies and sets market rules |
| SECP | Regulates the exchange, brokers and listed companies |
| Brokers (TREC holders) | Place orders for investors. See brokers at PSX |
| CDC (Central Depository Company) | Holds shares electronically in investors’ names |
| NCCPL | Clears and settles trades and collects capital gains tax |
Types of Shares and Markets
- Ordinary shares: give you part ownership, voting rights and a share of dividends.
- Preference shares: usually pay a fixed dividend before ordinary shareholders, with limited voting rights.
- Ready market: where most investors buy and sell shares for normal settlement.
- Futures market: contracts on future share prices, mainly for experienced traders.
- GEM board: for smaller growth companies with lighter listing rules and higher risk.
How Investors Make Money on PSX
- Capital gains: selling a share for more than you paid.
- Dividends: cash paid from company profits, often once or twice a year.
- Bonus and right shares: extra shares issued to existing shareholders.
Over long periods, shares have usually beaten bank deposits, but with much larger ups and downs. The KSE-100 rose about 18% between July 2025 and March 2026, yet fell about 21% from its January peak to the end of March.
How to Start Investing in the Pakistan Stock Exchange
- Choose an SECP-licensed broker. See how to choose a broker.
- Open a Sahulat Account online with your CNIC (up to Rs 3 million) or a standard account.
- Fund your account from a bank account in your own name.
- Pick companies or an index fund. See sectors at PSX, listed companies and PSX indices.
- Place your first order in the broker’s app.
Our step-by-step guide on how to buy shares in Pakistan online covers each step in detail. If you prefer not to pick shares yourself, an ETF or an equity mutual fund gives you a ready-made spread of companies.
Tax on PSX Investments
| Income | Filer | Non-filer |
|---|---|---|
| Capital gains on shares bought after 1 July 2024 | 15% | Higher rate under normal tax slabs |
| Dividends from most companies | 15% | 30% |
Risks of Investing in the Stock Market
- Price swings: the market can fall sharply on political, economic or global news.
- Company risk: a single company can cut its dividend or make losses.
- Liquidity risk: small shares can be hard to sell at a fair price.
- Scams: ignore guaranteed-profit offers and “tips” groups on WhatsApp or Telegram, and never pay money into a personal account.
Frequently Asked Questions
What is the Pakistan Stock Exchange?
PSX is the national stock exchange of Pakistan, formed in 2016 by merging the Karachi, Lahore and Islamabad exchanges. It lists 535 main-board companies.
How can I invest in the Pakistan Stock Exchange?
Open an account with an SECP-licensed broker, fund it from your own bank account and buy shares through the broker’s app. A Sahulat Account needs only your CNIC.
Is investing in PSX halal?
You can invest in Shariah-compliant companies, such as those in the KMI-30 index, or through Islamic equity funds.
How much money do I need to start?
PSX does not set a minimum. You can start with a small amount, although commission makes very small trades costly.
This guide is for general information only and is not financial or tax advice. Rates, returns and rules change often, so confirm the latest figures with the official source before you invest.
Related Guides
- How to buy shares in Pakistan online
- Brokers at PSX
- PSX indices
- Sectors at PSX
- PSX listed companies
- PSX timings
Sources
- PSX: About the exchange
- Business Recorder: Capital market in the Economic Survey 2025-26
- PK Revenue: KSE-100 on 27 October 2026
- ProPakistani: PSX moves to T+1 settlement
- PK Revenue: Capital gains tax rates, tax year 2027
Related guides: Read our guides on how to choose a PSX broker, PSX indices (KSE-100, KSE-30, KMI-30), sectors at PSX and PSX listed companies.
Sectors at PSX
Companies listed on the Pakistan Stock Exchange are grouped into 37 sectors. Knowing the sectors at PSX helps you understand
PSX Indices
PSX indices track how groups of shares on the Pakistan Stock Exchange are moving. The best known is the KSE-100,
Brokers at PSX
To buy or sell shares on the Pakistan Stock Exchange you must go through a licensed broker. Brokers at PSX
PSX Listed Companies
There are 535 companies listed on the PSX main board and 5 more on the Growth Enterprise Market (GEM) board,