Shariah Methodology - Al Meezan Investment Management Limited
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.


Sr. # Ticker Company Status Charity Rate
1 AABS Al-Abbas Sugar Mills Ltd* Compliant1 0.34%*
2 ABOT Abbott Lab (Pakistan) Ltd* Compliant 0.99%*
3 ACPL Attock Cement Pakistan Ltd Compliant 0.04%
4 AGIL Agriauto Industries Ltd Compliant 0.51%
5 AGP AGP Limited * Compliant 0.04%*
6 AGSML Abdullah Shah Ghazi Sugar Mills * Compliant1 0.00%*
7 AGTL Al-Ghazi Tractors Ltd* Compliant 0.10%*
8 AKZO Akzo Nobel Pakistan* Compliant 1.25%*
9 APL Attock Petroleum Ltd Compliant 0.51%
10 ARPL Archroma Pakistan Ltd* Compliant1 0.05%*
11 ASC Al Shaheer Corporation Ltd Compliant 0.00%
12 ASTL Amreli Steels Ltd Compliant 0.01%
13 ATBA Atlas Battery Ltd Compliant 0.11%
14 PREMA At-Tahur Limited Compliant 0.00%
15 ATLH Atlas Honda Ltd Compliant1 1.06%
16 ATRL Attock Refinery Ltd Compliant 1.10%
17 BCL Bolan Castings Ltd Compliant 0.04%
18 BIFO Biafo Industries Ltd Compliant 3.18%
19 BWCL Bestway Cement Ltd Compliant 1.81%
20 BYCO Byco Petroleum Pakistan Ltd Compliant 0.31%
21 CHCC Cherat Cement Co. Ltd Compliant 0.01%
22 CLOV Clover Pakistan Ltd Compliant 0.13%
23 CSAP Crescent Steel & Allied Products Compliant 0.02%
24 DAWH Dawood Hercules Corporation* Compliant 3.08%*
25 DCL Dewan Cement Ltd Compliant 0.01%
26 DCR Dolmen City REIT Compliant 0.00%
27 DFSM Dewan Farooq Spinning Mills Ltd Compliant 0.00%
28 DGKC D.G. Khan Cement Co. Ltd Compliant 2.91%
29 DSIL DS Industries Ltd Compliant 0.01%
30 DYNO Dynea Pakistan Ltd Compliant 0.07%
31 EFERT Engro Fertilizers Ltd* Compliant 1.24%*
32 FCEPL Frieslandcampins Engro Foods Limited (Engro Foods Ltd.)* Compliant 0.01%*
33 EMCO EMCO Industries Ltd Compliant 0.00%
34 ENGRO Engro Corporation Ltd* Compliant 4.73%*
35 EPCL Engro Polymer & Chemicals* Compliant 1.85%*
36 EXIDE Exide Pakistan Ltd Compliant1 0.01%
37 FATIMA Fatima Fertilizer Co. Ltd* Compliant 1.15%*
38 FCCL Fauji Cement Co. Ltd Compliant 0.15%
39 FECM First Elite Capital Modaraba Compliant 0.00%
40 FECTC Fecto Cement Ltd Compliant 0.52%
41 FEROZ Ferozsons Laboratories Ltd Compliant 0.06%
42 FLYNG Flying Cement Co. Ltd Compliant 0.00%
43 FML Feroze1888 Mills Ltd Compliant 0.18%
44 GAIL Ghani Automobile Industries Ltd Compliant 0.05%
45 GGGL Ghani Global Glass Ltd Compliant 0.20%
46 GGL Ghani Global Holdings Limited Compliant 0.14%
47 GHGL Ghani Glass Ltd Compliant 0.00%
48 GHNI Ghandhara Industries Ltd Compliant 0.02%
49 GHNL Ghandhara Nissan Ltd Compliant 0.67%
50 GLAXO GlaxoSmithKline Pakistan* Compliant 0.48%*
51 GSKCH Glaxo SmithKline Consumer* Compliant 0.06%*
52 GVGL Ghani Value Glass Ltd Compliant 0.22%
53 GWLC Gharibwal Cement Ltd Compliant 0.27%
54 HABSM Habib Sugar Mills Ltd* Compliant1 3.24%*
55 HASCOL Hascol Petroleum Ltd* Compliant 0.15%*
56 HCAR Honda Atlas Cars (Pakistan) Ltd Compliant1 1.06%
57 HINOON Highnoon Laboratories Ltd* Compliant 0.64%*
58 HSM Husein Sugar Mills Ltd* Compliant1 0.00%*
59 HTL Hi-Tech Lubricants Ltd Compliant 0.57%
60 HUBC Hub Power Company Ltd Compliant 4.53%**
61 IBLHL IBL HealthCare Ltd Compliant 1.17%
62 ICI ICI Pakistan Ltd Compliant 0.06%
63 ICL Ittehad Chemicals Ltd Compliant 0.00%
64 INIL International Industries Ltd Compliant 0.01%
65 ISL International Steels Ltd Compliant 0.00%
66 ITTEFAQ Ittefaq Iron Industries Compliant3 0.04%*
67 JOPP Johnson & Phillips (Pakistan) Ltd Compliant 0.10%
68 KEL K-Electric Ltd Compliant3 0.95%
69 KOHC Kohat Cement Co. Ltd Compliant 0.03%
70 KOIL Kohinoor Industries Ltd Compliant 0.27%
71 KTML Kohinoor Textile Mills Ltd Compliant 0.83%
72 LOADS Loads Limited Compliant 0.32%
73 LOTCHEM Lotte Chemical Pakistan Ltd* Compliant 1.16%*
74 LUCK Lucky Cement Ltd Compliant 1.63%
75 MACTER Macter International Ltd Compliant 0.00%
76 MARI Mari Petroleum Co. Ltd Compliant 1.94%
77 MLCF Maple Leaf Cement Factory Compliant 0.07%
78 MTL Millat Tractors Ltd Compliant 1.03%
79 MUGHAL Mughal Iron & Steel Industries Compliant 0.08%
80 NATF National Foods Ltd Compliant 0.00%
81 NETSOL NetSol Technologies Ltd Compliant 1.32%
82 NML Nishat Mills Ltd Compliant 2.48%
83 NRL National Refinery Ltd Compliant 0.03%
84 OGDC Oil & Gas Development Co. Ltd Compliant 4.75%
85 PKGS Packages Limited* Compliant 0.81%*
86 PAEL Pak Elektron Ltd* Compliant 0.00%*
87 PAKOXY Pakistan Oxygen Limited* Compliant 0.02%*
88 PICT Pakistan International Container Terminal* Compliant 0.56%*
89 PNSC Pakistan National Shipping Corporation Compliant 3.44%
90 POL Pakistan Oilfields Ltd Compliant 3.76%
91 POWER Power Cement Ltd Compliant 0.30%
92 PPL Pakistan Petroleum Limited Compliant 1.56%
93 PSMC Pak Suzuki Motor Co. Ltd* Compliant 0.06%*
94 PSO Pakistan State Oil Co. Ltd Compliant 0.77%
95 PTC Pakistan Telecommunication (PTCL)* Compliant 1.43%*
96 QUICE Quice Food Industries Ltd Compliant3 0.62%*
97 REDCO Redco Textiles Ltd Compliant 0.00%
98 RPL Roshan Packages Ltd Compliant 2.06%
99 SAZEW Sazgar Engineering Works Compliant 0.00%
100 SEARL The Searle Company Ltd Compliant 0.11%
101 SEPL Security Papers Ltd Compliant 3.38%
102 SHEL Shell (Pakistan) Ltd* Compliant 0.04%*
103 SKRS Sakrand Sugar Mills Ltd* Compliant1 0.00%*
104 SMCPL Safe Mix Concrete Ltd Compliant 0.08%
105 SNGP Sui Northern Gas Pipelines Ltd Compliant3 1.25%*
106 SPEL Synthetic Products Ltd Compliant 0.00%
107 SPL Sitara Peroxide Ltd Compliant 0.01%
108 SSGC Sui Southern Gas Co. Ltd Compliant3 2.30%
109 STCL Shabbir Tiles & Ceramics Ltd Compliant 0.11%
110 STPL Siddiqsons Tin Plate Ltd Compliant 1.60%
111 SYS Systems Limited* Compliant 0.29%*
112 TGL Tariq Glass Industries Ltd Compliant 0.02%
113 THCCL Thatta Cement Company Compliant 0.60%
114 TPL TPL Corp Limited Compliant 1.47%
115 TREET Treet Corporation Ltd Compliant 0.13%
116 TRPOL Tri-Star Polyester Ltd Compliant 0.00%
117 UNITY Unity Foods Ltd Compliant 0.00%
118 WAVES WAVES Singer Pakistan Ltd* Compliant 1.06%*
119 WTL WorldCall Telecom Ltd* Compliant 0.25%*
120 MEBL Meezan Bank Ltd* Compliant 0.00%*
121 BIPL BankIslami Pakistan Ltd.* Compliant 0.00%*
122 ANL Azgard Nine Ltd Non-Compliant  
123 TSPL Tri-Star Power Ltd. Non-Compliant  
124 ECOP EcoPack Ltd Non-Compliant  
125 BGL Balochistan Glass Ltd Non-Compliant  
126 AVN Avanceon Limited Non-Compliant  
127 CEPB Century Paper & Board Mills Non-Compliant  
128 BATA Bata (Pakistan) Ltd Non-Compliant  
129 ASL Aisha Steel Ltd Non-Compliant  
130 CTM Colony Textile Mills Ltd Non-Compliant  
131 DOL Descon Oxychem Ltd Non-Compliant  
132 LPL Lalpir Power Ltd Non-Compliant  
133 DSL Dost Steel Ltd Non-Compliant  
134 GATM Gul Ahmed Textile Mills Ltd Non-Compliant  
135 FFBL Fauji Fertilizer Bin Qasim Ltd Non-Compliant  
136 FFC Fauji Fertilizer Company Ltd Non-Compliant  
137 UBDL United Brands Limited Non-Compliant  
138 GTYR General Tyre & Rubber Co. Non-Compliant  
139 CPPL Cherat Packaging Ltd Non-Compliant  
140 CRTM Crescent Textile Mills Ltd Non-Compliant  
141 TRIPF Tri-Pack Films Ltd Non-Compliant  
142 HINO Hinopak Motors Ltd Non-Compliant1  
143 KAPCO Kot Addu Power Company Non-Compliant  
144 INDU Indus Motor Company Ltd Non-Compliant  
145 THALL Thal Limited Non-Compliant  
146 PRL Pakistan Refinery Ltd Non-Compliant  
147 PIOC Pioneer Cement Ltd Non-Compliant  
148 NRSL Nimir Resins Ltd Non-Compliant  
149 NPL Nishat Power Ltd Non-Compliant  
150 MERIT Merit Packaging Ltd Non-Compliant  
151 NCL Nishat (Chunian) Ltd Non-Compliant  
152 NCPL Nishat Chunian Power Ltd Non-Compliant  
153 MFL Matco Foods Limited Non-Compliant  
154 PACE Pace (Pakistan) Limited Non-Compliant  
155 PKGP Pakgen Power Ltd Non-Compliant  
156 PSX Pakistan Stock Exchange Ltd. Non-Compliant  
157 TELE Telecard Limited Non-Compliant  
158 SHSML Shahmurad Sugar Mills Ltd Non-Compliant1  
159 SERF Service Fabrics Ltd Non-Compliant  
160 WYETH Wyeth Pakistan Ltd Non-Compliant2  
161 PIBTL Pakistan Inl Bulk Terminal Ltd Non-Compliant  
162 SAIF Saif Textile Mills Ltd Non-Compliant  
163 KOSM Kohinoor Spinning Mills Ltd Non-Compliant  
164 AHCL Arif Habib Corporation Ltd Non-Compliant  
165 HWQS Haseeb Waqas Sugar Mills Ltd Non-Compliant1  
166 TRG TRG Pakistan Ltd Non-Compliant  
167 SRVI Service Industries Ltd Non-Compliant  
168 HIRAT Hira Textile Mills Ltd Non-Compliant3  
169 FFL Fauji Foods Limited Non-Compliant  
170 CWSM Chakwal Spinning Mills Ltd Non-Compliant3  
171 AGL Agritech Limited Non-Compliant  
172 PMI Prudential Modaraba 1st Non-Compliant  
173 YOUW Yousaf Weaving Mills Ltd Non-Compliant  
174 HUMNL Hum Network Ltd NC by nature  
175 786 786 Investments Ltd NC by nature  
176 AHL Arif Habib Limited NC by nature  
177 MDTL Media Times Ltd NC by nature  
178 BOK Bank of Khyber NC by nature  
179 ESBL Escorts Investment Bank Ltd NC by nature  
180 FCSC First Capital Securities Corp. Ltd NC by nature  
181 FDIBL First Dawood Investment Bank Ltd NC by nature  
182 ICIBL Invest Capital Investment Bank NC by nature  
183 JSCL Jahangir Siddiqui & Co. Ltd NC by nature  
184 MUREB Murree Brewery Company NC by nature  
185 EPQL Engro Powergen Qadirpur Ltd***    
186 SPWL Saif Power Ltd***    

Charity rate means the investors of respective companies should purify dividend income using the following formula:

Dividend income received x Charity rate

NC = Non-Compliant

* These are provisional rates for dividend purification which are subject to final adjustment upon announcement of respective companies’ annual accounts for the year 2019/2020.

** Non Compliant Revenue earned by CPPA (GoP) and non compliant expensed paid to PSO (GoP) has been set off.

*** Status is not ascertained due to non-disclosure of the required information i.e breakup of sales revenue including interest element.

  1. Based on March-2019 accounts
  2. Based on May-2019 accounts
  3. As per last available annual / half-yearly accounts