Al Meezan Investments

Shariah Methodology

At Al Meezan, we are dedicated to providing Shariah compliant investment solutions. In this regard we adhere to the Shariah guidelines as advised by the Shariah Board. The investments are limited to asset classes approved by the Shariah Advisor and all companies under investment consideration are regularly screened for Shariah compliance.

Shariah Screening Criteria (for equity securities)

Shariah compliance of stocks is done under the guidance of qualified and reputed Shariah experts. For stocks to be “Shariah compliant”, it must meet ALL the six key tests given below.

Business of the Investee Company

Core business of the company must be halal and in line with the dictates of Shariah. Hence, investment in securities of any company dealing in conventional banking, conventional insurance, alcoholic drinks, tobacco, pork production, arms manufacturing, pornography or related activities is not permissible.

Debt to Total Assets

Debt to Asset ratio should be less than 37%. Debt, in this case, is classified as any interest bearing debts. Zero coupon bonds and preference shares are, both, by definition, part of debt.

Non-Compliant Investments to Total Assets

The ratio of non compliant investments to total assets should be less than 33%. Investment in any non-compliant security shall be included for the calculation of this ratio.

Non-Compliant Income to Total revenue – Purification of Non-compliant income

The ratio of non compliant income to total revenue should be less than 5%. Total revenue includes Gross revenue plus any other income earned by the company. This amount is cleansed out as charity as a pro rata ratio of dividends issued by the company.

Illiquid Assets to Total Assets

The ratio of illiquid assets to total assets should be at least 25%. Illiquid asset, here, is defined as any asset that that Shariah permits to be traded at value other than the par.

Net Liquid Assets to Share Price

The market price per share should be greater than the net liquid assets per share calculated as: (Total Assets – Illiquid Assets – Total Liabilities) divided by number of shares.


1 ABOT Abbott Lab (Pakistan) Ltd Compliant 1.36%
2 AGIL Agriauto Industries Ltd Compliant   0.50%*
3 AKZO Akzo Nobel Pakistan Compliant 0.81%
4 ASC Al Shaheer Corporation Ltd Compliant   0.36%*
5 AGTL Al-Ghazi Tractors Ltd Compliant 0.53%
6 ASTL Amreli Steels Ltd Compliant   0.01%*
7 ARPL Archroma Pakistan Ltd Compliant1 0.00%
8 ATBA Atlas Battery Compliant   0.27%*
9 ATLH Atlas Honda Ltd Compliant1   0.82%*
10 ACPL Attock Cement Pakistan Ltd. Compliant   0.03%*
11 APL Attock Petroleum Ltd Compliant   0.68%*
12 ATRL Attock Refinery Ltd Compliant   1.05%*
13 BIPL Bankislami Compliant 0.00%
14 BNWM Bannu Woollen Mills Ltd Compliant   0.11%*
15 BERG Berger Paints Pakistan Ltd Compliant   0.13%*
16 BWCL Bestway Cement Ltd Compliant   2.64%*
17 BIFO Biafo Industries Ltd Compliant   1.52%*
18 BCL Bolan Castings Ltd Compliant   0.02%*
19 BPL Burshane LPG (Pakistan) Ltd Compliant   0.06%*
20 BYCO Byco Petroleum Pakistan Ltd Compliant   0.28%*
21 CHCC Cherat Cement Co. Ltd Compliant   0.01%*
22 CPPL Cherat Packaging Ltd Compliant   0.01%*
23 CSAP Crescent Steel & Allied Products Compliant   0.01%*
24 DGKC D.G. Khan Cement Co. Ltd Compliant   4.39%*
25 DAWH Dawood Hercules Corporation Compliant 2.99%
26 DCL Dewan Cement Ltd Compliant   0.07%*
27 DFSM Dewan Farooq Spinning Mills Ltd Compliant   0.00%*
28 DCR Dolmen City REIT Compliant   0.00%*
29 DSIL DS Industries Ltd Compliant   0.51%*
30 DYNO Dynea Pakistan Ltd Compliant   0.07%*
31 ECOP EcoPack Ltd Compliant   0.02%*
32 ENGRO Engro Corporation Ltd Compliant 3.03%
33 EFERT Engro Fertilizers Ltd Compliant 0.12%
34 EFOODS Engro Foods Ltd Compliant 0.02%
35 EPCL Engro Polymer & Chemicals Compliant 0.15%
36 EXIDE Exide Pakistan Ltd Compliant1   0.03%*
37 FRSM Faran Sugar Mills Ltd Compliant1 0.11%
38 FATIMA Fatima Fertilizer Co. Ltd Compliant 0.71%
39 FCCL Fauji Cement Co. Ltd Compliant   0.04%*
40 FECTC Fecto Cement Ltd Compliant   0.68%*
41 FML Feroze1888 Mills Ltd Compliant   0.00%*
42 FEROZ Ferozsons Laboratories Ltd Compliant   1.02%*
43 FECM First Elite capital Modaraba Compliant   1.53%*
44 FHAM First Habib Modaraba Compliant   0.00%*
45 PAKMI First Pak Modaraba  Compliant   0.00%*
46 PMI First Prudential Modaraba  Compliant   0.00%*
47 FUDLM First UDL Modaraba  Compliant   0.01%*
48 FLYNG Flying Cement Co. Ltd Compliant   0.00%*
49 GAMON Gammon Pakistan Ltd Compliant2   0.11%*
50 GTYR General Tyre & Rubber Co. Compliant   0.02%*
51 GHNI Ghandhara Industries Ltd Compliant   0.01%*
52 GHNL Ghandhara Nissan Ltd Compliant   0.63%*
53 GAIL Ghani Automobile Industries Ltd Compliant   0.02%*
54 GGL Ghani Gases Ltd Compliant   0.09%*
55 GHGL Ghani Glass Ltd Compliant   0.00%*
56 GWLC Gharibwal cement Compliant   0.10%*
57 GLAXO GlaxoSmithKline Pakistan Compliant 0.57%
58 HMM Habib Metro Modaraba Compliant   0.00%*
59 HABSM Habib Sugar Mills Ltd Compliant1 1.86%
60 HASCOL Hascol Petroleum Ltd Compliant 0.11%
61 HTL Hi Tech Lubricants Ltd Compliant   0.50%*
62 HINOON Highnoon Laboratories Ltd Compliant 0.22%
63 HINO Hinopak Motors Ltd Compliant1   0.68%*
64 HUBC Hub Power Company Ltd Compliant   0.10%*
65 HSM Husein Sugar Mills Ltd Compliant1 0.01%
66 IBLHL IBL HealthCare Ltd Compliant   1.55%*
67 ICI ICI Pakistan Ltd Compliant   0.03%*
68 IDRT Idrees Textile Mills Ltd Compliant   0.14%*
69 INIL International Industries Ltd Compliant   0.00%*
70 ISL International Steels Ltd Compliant   0.00%*
71 ITTEFAQ Ittefaq Iron Industries Compliant   0.13%*
72 ICL Ittehad Chemicals Ltd Compliant   0.00%*
73 JVDC Javedan Corporation Ltd Compliant   0.25%*
74 JUBS Jubilee Spinning & Weaving Mills Ltd Compliant   0.33%*
75 KEL K-Electric Ltd Compliant2   1.35%*
76 KOHC Kohat Cement Co. Ltd Compliant   1.23%*
77 KOHE Kohinoor Energy Ltd Compliant   0.01%*
78 KOIL Kohinoor Industries Ltd Compliant   0.00%*
79 KTML Kohinoor Textile Mills Ltd Compliant   0.94%*
80 LPL Lalpir Power Ltd Compliant 0.27%
81 LMSM LandMark Spinning Industries Ltd Compliant   0.00%*
82 PAKOXY Pakistan Oxygen Ltd Compliant 0.00%
83 LOADS Loads Ltd Compliant   0.54%*
84 LOTCHEM Lotte Chemical Pakistan Ltd Compliant 0.59%
85 LUCK Lucky Cement Ltd Compliant   3.23%*
86 MACFL MACPAC Films Ltd Compliant   0.00%*
87 MACTER Macter International Ltd Compliant   0.07%*
88 MLCF Maple Leaf Cement Factory Compliant   0.04%*
89 MARI Mari Petroleum Co. Ltd Compliant   0.63%*
90 MEBL Meezan Bank Compliant 0.00%
91 MRNS Mehran Sugar Mills Ltd Compliant1 1.66%
92 MTL Millat Tractors Ltd Compliant   0.47%*
93 MUGHAL Mughal Iron & Steel Industries Compliant   0.30%*
94 NATF National Foods Ltd Compliant   0.01%*
95 NRL National Refinery Ltd Compliant   0.18%*
96 NETSOL NetSol Technologies Ltd Compliant   0.46%*
97 NML Nishat Mills Ltd Compliant   2.30%*
98 NPL Nishat Power Limited Compliant   0.31%*
99 OGDC Oil & Gas Development Co. Compliant     4.60%*
100 ORIXM Orix Modarba Compliant     0.00%*
101 PKGS Packages Limited Compliant 0.89%
102 PAEL Pak Elektron Ltd Compliant 0.00%
103 PSMC Pak Suzuki Motor Co. Ltd Compliant 0.58%
104 PCAL Pakistan Cables Ltd Compliant   0.00%*
105 PNSC Pakistan National Shipping Corporation Compliant   1.65%*
106 POL Pakistan Oilfields Ltd Compliant   2.00%*
107 PPL Pakistan Petroleum Limited Compliant   3.79%*
108 PRL Pakistan Refinery Ltd Compliant   0.02%*
109 PSYL Pakistan Synthetics Compliant   0.00%*
110 PTC Pakistan Telecommunication Company Ltd Compliant 1.69%
111 PIOC Pioneer Cement Ltd Compliant   0.18%*
112 POWER Power Cement Ltd Compliant   0.12%*
113 QUICE Quice Food Industries Ltd Compliant   0.00%*
114 REDCO Redco Textiles Ltd Compliant   0.00%*
115 RPL Roshan Packages Ltd Compliant   2.24%*
116 SMCPL SafeMix Concrete Products Ltd Compliant   0.13%*
117 SKRS Sakrand Sugar Mills Ltd Compliant1 0.78%
118 SAPL Sanofi-aventis Pakistan Ltd Compliant 0.15%
119 SAZEW Sazgar Engineering Works Compliant   0.00%*
120 SEPL Security Papers Ltd Compliant   0.70%*
121 STCL Shabbir Tiles & Ceramics Ltd Compliant   0.00%*
122 SML Shakarganj Ltd. Compliant1 0.07%
123 SHEL Shell (Pakistan) Ltd Compliant 0.06%
124 SHFA Shifa International Hospitals Compliant   0.29%*
125 SITC Sitara Chemical Industries Ltd Compliant   0.04%*
126 SPL Sitara Peroxide Ltd Compliant   0.16%*
127 SNGP Sui Northern Gas Pipelines Ltd Compliant   1.01%*
128 SSGC Sui Southern Gas Co. Ltd Compliant2   1.73%*
129 SPEL Synthetic Products Ltd Compliant   0.03%*
130 SYS Systems Limited Compliant 0.10%
131 TGL Tariq Glass Industries Ltd Compliant   0.00%*
132 THCCL Thatta Cement Company Compliant   0.64%*
133 SEARL The Searle Company Ltd Compliant   0.13%*
134 TOWL Towellers Limited Compliant   0.07%*
135 TPL TPL Trakker Ltd Compliant   0.25%*
136 TREET Treet Corporation Ltd Compliant   0.54%*
137 TRPOL Tri-Star Polyester Ltd Compliant2   0.00%*
138 UDPL United Distributors (Pakistan) Ltd Compliant   0.03%*
139 WAHN Wah-Noble Chemicals Ltd Compliant   0.01%*
140 ZIL ZIL Limited Compliant 0.06%
141 ADAMS Adam Sugar Mills Ltd Non-Compliant1  
142 AGL Agritech Limited Non-Compliant2  
143 ASL Aisha Steel Mills Ltd Non-Compliant  
144 AMTEX Amtex Limited Non-Compliant  
145 ANSM Ansari Sugar Mills Ltd Non-Compliant1  
146 AHCL Arif Habib Corporation Ltd Non-Compliant  
147 AVN Avanceon limited Non-Compliant  
148 ANL Azgard Nine Ltd Non-Compliant  
149 BGL Balochistan Glass Ltd Non-Compliant  
150 BILF Bilal Fibres Ltd Non-Compliant  
151 CEPB Century Paper & Board Mills Non-Compliant  
152 CWSM Chakwal Spinning Mills Ltd Non-Compliant  
153 CHAS Chashma Sugar Mills Ltd Non-Compliant1  
154 CLOV Clover Pakistan Ltd Non-Compliant  
155 CTM Colony Textile Mills Ltd Non-Compliant  
156 CRTM Crescent Textile Mills Ltd Non-Compliant  
157 DOL Descon Oxychem Ltd Non-Compliant  
158 DFML Dewan Farooque Motors Ltd Non-Compliant  
159 DWSM Dewan Sugar Mills Ltd Non-Compliant1  
160 DKL Drekkar Kingsway Ltd Non-Compliant  
161 EPQL Engro Powergen Qadirpur Ltd Non-Compliant  
162 FFBL Fauji Fertilizer Bin Qasim Ltd Non-Compliant  
163 FFC Fauji Fertilizer Company Ltd Non-Compliant  
164 FFL Fauji Foods Ltd Non-Compliant  
165 GADT Gadoon Textile Mills Ltd Non-Compliant  
166 GGGL Ghani Global Glass Ltd Non-Compliant  
167 GFIL Ghazi Fabrics International Ltd Non-Compliant  
168 GSKCH Glaxo Smith Consumer Healthcare Non-Compliant  
169 GATM Gul Ahmed Textile Mills Ltd Non-Compliant  
170 HWQS Haseeb Waqas Sugar Mills Ltd Non-Compliant1  
171 HIRAT Hira Textile Mills Ltd Non-Compliant  
172 HCAR Honda Atlas Cars (Pakistan) Ltd Non-Compliant1  
173 IMSL Imperial Sugar Ltd Non-Compliant1  
174 INDU Indus Motor Company Ltd Non-Compliant  
175 JOPP Johnson & Phillips (Pakistan) Ltd Non-Compliant  
176 KOSM Kohinoor Spinning Mills Ltd Non-Compliant  
177 KAPCO Kot Addu Power Company Non-Compliant  
178 MERIT Merit Packaging Ltd Non-Compliant  
179 MZSM Mirza Sugar Mills Ltd Non-Compliant2  
180 NICL Nimir Industrial Chemicals Ltd Non-Compliant  
181 NRSL Nimir Resins Ltd Non-Compliant  
182 NCL Nishat (Chunian) Ltd Non-Compliant  
183 NCPL Nishat Chunian Power Ltd Non-Compliant  
184 NONS Noon Sugar Mills Ltd Non-Compliant1  
185 OLSM Olympia Spinning & Weaving Mills Ltd Non-Compliant  
186 PKGP Pakgen Power Ltd Non-Compliant  
187 PIBTL Pakistan International Bulk Terminal Ltd Non-Compliant  
188 PSO Pakistan State Oil Co. Ltd Non-Compliant  
189 PSX Pakistan Stock Exchange Non-Compliant  
190 PIAA PIA Non-Compliant2  
191 REWM Reliance Weaving Mills Ltd Non-Compliant  
192 SFAT Safa Textiles Ltd Non-Compliant2  
193 SPWL Saif Power Ltd Non-Compliant2  
194 SAIF Saif Textile Mills Non-Compliant  
195 SERF Service Fabrics Ltd Non-Compliant  
196 SRVI Service industries Ltd Non-Compliant  
197 STPL Siddiqsons Tin Plate Ltd Non-Compliant  
198 SIEM Siemens (Pakistan) Engineering Non-Compliant1  
199 SING Singer Pakistan Ltd Non-Compliant2  
200 TELE Telecard Limited Non-Compliant  
201 THALL Thal Limited Non-Compliant  
202 TRG TRG Pakistan Ltd Non-Compliant  
203 TRIPF Tri-Pack Films Ltd Non-Compliant  
204 TSPL Tri-Star Power Ltd. Non-Compliant2  
205 UNITY Unity Foods Ltd Non-Compliant  
206 WTL WorldCall Telecom Ltd Non-Compliant  
207 WYETH Wyeth Pakistan Ltd Non-Compliant3  
208 YOUW Yousaf Weaving Mills Ltd Non-Compliant  
209 AHL Arif Habib Limited Non-Compliant NC By Nature
210 BOK Bank of Khyber Non-Compliant NC By Nature
211 FABL Faysal Bank Non-Compliant NC By Nature
212 HUMNL Hum Network Limited Non-Compliant NC By Nature

Dividend purification rate means investors of the respective companies should purify dividend income by the following formula

Dividend income received x Dividend purification rate

*These are provisional rates for dividend purification which are subject to final adjustment on the basis of respective company’s annual accounts for the year 2018.

  1. As per September 2017
  2. As per last available accounts
  3. As per November 2017