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 ABOT Abbott Lab (Pakistan) Ltd Compliant 1.20%
2 ACPL Attock Cement Pakistan Ltd Compliant 0.04%*
3 ADAMS Adam Sugar Mills Ltd Compliant1 0.06%
4 AGIL Agriauto Industries Ltd Compliant 0.44%*
5 AGP AGP Limited Compliant 0.09%
6 AGTL Al-Ghazi Tractors Ltd Compliant 0.14%
7 AKZO Akzo Nobel Pakistan Compliant 0.80%
8 APL Attock Petroleum Ltd Compliant 0.52%
9 ARPL Archroma Pakistan Ltd Compliant1 0.08%
10 ASC Al Shaheer Corporation Ltd Compliant 0.01%*
11 ASTL Amreli Steels Ltd Compliant 0.01%*
12 ATBA Atlas Battery Ltd Compliant 0.05%*
13 PREMA At-Tahur Limited Compliant 0.00%*
14 ATLH Atlas Honda Ltd Compliant1 0.85%*
15 ATRL Attock Refinery Ltd Compliant 1.08%*
16 BAPL Bawany Air Product Ltd Compliant 0.00%*
17 BATA Bata (Pakistan) Ltd Compliant 0.16%
18 BCL Bolan Castings Ltd Compliant 0.04%*
19 BERG Berger Paints Pakistan Ltd Compliant 0.20%*
20 BIFO Biafo Industries Ltd Compliant 0.26%*
21 BIPL BankIslami Pakistan Ltd. Compliant 0.00%
22 BNWM Bannu Woollen Mills Ltd Compliant 0.08%*
23 BPL Burshane LPG (Pakistan) Ltd Compliant 0.09%*
24 BWCL Bestway Cement Ltd Compliant 1.71%*
25 CHCC Cherat Cement Co. Ltd Compliant 0.01%*
26 CLOV Clover Pakistan Ltd Compliant 0.21%*
27 CSAP Crescent Steel & Allied Products Compliant 0.17%*
28 DAAG Data Agro Limited Compliant 0.00%*
29 DAWH Dawood Hercules Corporation Compliant 4.01%
30 DCL Dewan Cement Ltd Compliant 0.00%*
31 DCR Dolmen City REIT Compliant 0.00%*
32 DFSM Dewan Farooq Spinning Mills Ltd Compliant 0.00%*
33 DGKC D.G. Khan Cement Co. Ltd Compliant 2.32%*
34 DNCC Dandot Cement Co. Ltd Compliant 0.00%*
35 DSIL DS Industries Ltd Compliant 0.00%*
36 DYNO Dynea Pakistan Ltd Compliant 0.01%*
37 EFERT Engro Fertilizers Ltd Compliant 0.43%
38 EFOODS Engro Foods Ltd Compliant 0.00%
39 EMCO EMCO Industries Ltd Compliant 0.00%*
40 ENGRO Engro Corporation Ltd Compliant 3.52%
41 EPCL Engro Polymer & Chemicals Compliant 2.76%
42 EXIDE Exide Pakistan Ltd Compliant1 0.03%*
43 FATIMA Fatima Fertilizer Co. Ltd Compliant 1.02%
44 FCCL Fauji Cement Co. Ltd Compliant 0.15%*
45 FECM First Elite Capital Modaraba Compliant 0.17%*
46 FECTC Fecto Cement Ltd Compliant 0.23%*
47 FEROZ Ferozsons Laboratories Ltd Compliant 0.21%*
48 FLYNG Flying Cement Co. Ltd Compliant 0.00%*
49 FML Feroze1888 Mills Ltd Compliant 0.00%*
50 FTMM First Treet Manufacturing Modaraba Compliant 0.00%*
51 FUDLM First UDL Modaraba Compliant 0.00%*
52 GAIL Ghani Automobile Industries Ltd Compliant 0.02%*
53 GGGL Ghani Global Glass Ltd Compliant 0.02%*
54 GGL Ghani Gases Ltd Compliant 0.11%*
55 GHGL Ghani Glass Ltd Compliant 0.00%*
56 GHNI Ghandhara Industries Ltd Compliant 0.00%*
57 GHNL Ghandhara Nissan Ltd Compliant 0.93%*
58 GLAXO GlaxoSmithKline Pakistan Compliant 0.75%
59 GSKCH Glaxo SmithKline Consumer Healthcare Compliant 0.82%
60 GVGL Ghani Value Glass Ltd Compliant 0.19%*
61 GWLC Gharibwal Cement Ltd Compliant 0.27%*
62 HABSM Habib Sugar Mills Ltd Compliant1 1.55%
63 HASCOL Hascol Petroleum Ltd Compliant 0.13%
64 HCAR Honda Atlas Cars (Pakistan) Ltd Compliant1 1.27%*
65 HINO Hinopak Motors Ltd Compliant1 0.69%*
66 HINOON Highnoon Laboratories Ltd Compliant 0.15%
67 HSM Husein Sugar Mills Ltd Compliant1 0.00%
68 HSPI Huffaz Seamless Pipe Ind. Compliant 0.00%*
69 HTL Hi-Tech Lubricants Ltd Compliant 0.52%*
70 IBLHL IBL HealthCare Ltd Compliant 1.23%*
71 ICI ICI Pakistan Ltd Compliant 0.10%*
72 ICL Ittehad Chemicals Ltd Compliant 0.00%*
73 INIL International Industries Ltd Compliant 0.01%*
74 ISL International Steels Ltd Compliant 0.00%*
75 ITTEFAQ Ittefaq Iron Industries Compliant 0.04%*
76 JVDC Javedan Corporation Ltd Compliant 0.46%*
77 KEL K-Electric Ltd Compliant3 1.35%
78 KOHC Kohat Cement Co. Ltd Compliant 0.65%*
79 KOHE Kohinoor Energy Ltd Compliant 2.92%*
80 KOIL Kohinoor Industries Ltd Compliant 0.00%*
81 KTML Kohinoor Textile Mills Ltd Compliant 0.43%*
82 LEUL Leather-Up Limited Compliant 0.00%*
83 LOADS Loads Limited Compliant 0.39%*
84 LOTCHEM Lotte Chemical Pakistan Ltd Compliant 0.75%
85 LPGL Leiner Pak Gelatine Ltd Compliant 0.00%*
86 LUCK Lucky Cement Ltd Compliant 2.09%*
87 MACFL MACPAC Films Ltd Compliant 0.00%*
88 MARI Mari Petroleum Co. Ltd Compliant 1.04%*
89 MEBL Meezan Bank Ltd Compliant 0.00%
90 MLCF Maple Leaf Cement Factory Compliant 0.05%*
91 MTL Millat Tractors Ltd Compliant 0.11%*
92 MUGHAL Mughal Iron & Steel Industries Compliant 0.07%*
93 NATF National Foods Ltd Compliant 0.08%*
94 NETSOL NetSol Technologies Ltd Compliant 0.57%*
95 NML Nishat Mills Ltd Compliant 1.85%*
96 NRL National Refinery Ltd Compliant 0.03%*
97 OGDC Oil & Gas Development Co. Ltd Compliant 4.26%*
98 PAEL Pak Elektron Ltd Compliant 0.00%
99 PAKOXY Pakistan Oxygen Limited Compliant 0.01%
100 PCAL Pakistan Cables Ltd Compliant 0.00%*
101 PIBTL Pakistan International Bulk Terminal Ltd Compliant 1.14%*
102 PICT Pakistan International Container Terminal Compliant 0.19%
103 PIOC Pioneer Cement Ltd Compliant 0.06%*
104 PKGS Packages Limited Compliant 0.75%
105 PMI First Prudential Modaraba Compliant 0.00%*
106 PNSC Pakistan National Shipping Corporation Compliant 3.54%*
107 POL Pakistan Oilfields Ltd Compliant 3.20%*
108 POWER Power Cement Ltd Compliant 0.36%*
109 PPL Pakistan Petroleum Limited Compliant 1.31%*
110 PSMC Pak Suzuki Motor Co. Ltd Compliant 0.27%
111 PTC Pakistan Telecommunication (PTCL) Compliant 1.27%
112 QUICE Quice Food Industries Ltd Compliant 0.62%*
113 RPL Roshan Packages Ltd Compliant 1.81%*
114 RUBY Ruby Textile Mills Ltd Compliant 0.00%*
115 SAPL Sanofi-aventis Pakistan Ltd Compliant 0.04%
116 SAZEW Sazgar Engineering Works Compliant 0.00%*
117 SCL Shield Corporation Ltd Compliant 0.00%*
118 SEARL The Searle Company Ltd Compliant 0.11%*
119 SEPL Security Papers Ltd Compliant 2.52%*
120 SHEL Shell (Pakistan) Ltd Compliant 0.04%
121 SITC Sitara Chemical Industries Ltd Compliant 0.09%*
122 SKRS Sakrand Sugar Mills Ltd Compliant1 0.20%
123 SMCPL Safe Mix Concrete Ltd Compliant 0.01%*
124 SNGP Sui Northern Gas Pipelines Ltd Compliant3 1.01%
125 SPEL Synthetic Products Ltd Compliant 0.00%*
126 SPL Sitara Peroxide Ltd Compliant 0.07%*
127 SSGC Sui Southern Gas Co. Ltd Compliant3 2.30%
128 STCL Shabbir Tiles & Ceramics Ltd Compliant 0.00%*
129 STPL Siddiqsons Tin Plate Ltd Compliant 0.09%*
130 TGL Tariq Glass Industries Ltd Compliant 0.05%*
131 THALL Thal Limited Compliant 2.73%*
132 THCCL Thatta Cement Company Compliant 0.26%*
133 TPL TPL Corporation Compliant 1.05%*
134 TREET Treet Corporation Ltd Compliant 0.84%*
135 UBDL United Brands Limited Compliant 0.00%*
136 WAVES WAVES Singer Pakistan Ltd Compliant 1.51%
137 WTL WorldCall Telecom Ltd Compliant 0.44%
138 ANSM Ansari Sugar Mills Ltd Non-Compliant3
139 AGL Agritech Limited Non-Compliant3
140 AVN Avanceon Limited Non-Compliant
141 SARC Sardar Chemical Industries Non-Compliant
142 AHCL Arif Habib Corporation Ltd Non-Compliant
143 AMTEX Amtex Limited Non-Compliant
144 ANL Azgard Nine Ltd Non-Compliant
145 ASL Aisha Steel Ltd Non-Compliant
146 BGL Balochistan Glass Ltd Non-Compliant
147 BILF Bilal Fibres Ltd Non-Compliant
148 BYCO Byco Petroleum Pakistan Ltd Non-Compliant
149 CEPB Century Paper & Board Mills Non-Compliant
150 CPPL Cherat Packaging Ltd Non-Compliant
151 CRTM Crescent Textile Mills Ltd Non-Compliant
152 CTM Colony Textile Mills Ltd Non-Compliant
153 CWSM Chakwal Spinning Mills Ltd Non-Compliant
154 DFML Dewan Farooque Motors Ltd Non-Compliant
155 DKL Drekkar Kingsway Ltd Non-Compliant
156 DOL Descon Oxychem Ltd Non-Compliant
157 DSL Dost Steel Ltd Non-Compliant
158 DWSM Dewan Sugar Mills Ltd Non-Compliant1
159 FFBL Fauji Fertilizer Bin Qasim Ltd Non-Compliant
160 FFC Fauji Fertilizer Company Ltd Non-Compliant
161 FFL Fauji Foods Ltd Non-Compliant
162 GADT Gadoon Textile Mills Ltd Non-Compliant
163 GATM Gul Ahmed Textile Mills Ltd Non-Compliant
164 GFIL Ghazi Fabrics International Ltd Non-Compliant
165 GTYR General Tyre & Rubber Co. Non-Compliant
166 WYETH Wyeth Pakistan Ltd Non-Compliant2
167 YOUW Yousaf Weaving Mills Ltd Non-Compliant
168 HIRAT Hira Textile Mills Ltd Non-Compliant
169 HWQS Haseeb Waqas Sugar Mills Ltd Non-Compliant1
170 IMSL Imperial Sugar Ltd Non-Compliant1
171 INDU Indus Motor Company Ltd Non-Compliant
172 JOPP Johnson & Phillips (Pakistan) Ltd Non-Compliant
173 ECOP EcoPack Ltd Non-Compliant
174 KOSM Kohinoor Spinning Mills Ltd Non-Compliant
175 MERIT Merit Packaging Ltd Non-Compliant
176 MFL Matco Foods Ltd Non-Compliant
177 NCL Nishat (Chunian) Ltd Non-Compliant
178 NRSL Nimir Resins Ltd Non-Compliant
179 OML Olympia Mills Ltd Non-Compliant
180 PACE Pace (Pakistan) Ltd Non-Compliant
181 PPVC Pakistan PVC Ltd Non-Compliant
182 PRL Pakistan Refinery Ltd Non-Compliant
183 PSO Pakistan State Oil Co. Ltd Non-Compliant
184 PSX Pakistan Stock Exchange Ltd Non-Compliant
185 REDCO Redco Textiles Ltd Non-Compliant
186 REWM Reliance Weaving Mills Non-Compliant
187 SAIF Saif Textile Mills Ltd Non-Compliant
188 SERF Service Fabrics Ltd Non-Compliant
189 SIEM Siemens (Pakistan) Engineering Non-Compliant1
190 SRVI Service Industries Ltd Non-Compliant
191 SYS Systems Limited Non-Compliant
192 TELE Telecard Limited Non-Compliant
193 TRG TRG Pakistan Ltd Non-Compliant
194 TRIPF Tri-Pack Films Ltd Non-Compliant
195 TRPOL Tri-Star Polyester Ltd Non-Compliant
196 TPLP TPL Properties Ltd Non-Compliant
197 CYAN Cyan Limited NC by nature
198 HUMNL Hum Network Ltd NC by nature
199 AHL Arif Habib Ltd NC by nature
200 AKDCL AKD Capital Ltd. NC by nature
201 BOK Bank of Khyber NC by nature
202 ESBL Escorts Investment Bank Ltd NC by nature
203 FCSC First Capital Securities Corp. Ltd NC by nature
204 FDIBL First Dawood Investment Bank Ltd NC by nature
205 FNEL First National Equities Ltd NC by nature
206 ICIBL Invest Capital Investment Bank NC by nature
207 IGIHL IGI Holdings Ltd NC by nature
208 JSCL Jahangir Siddiqui & Co. Ltd NC by nature
209 MDTL Media Times Ltd NC by nature
210 OLPL Orix Leasing Pakistan Ltd NC by nature
211 PASL Pervez Ahmed Securities Ltd NC by nature
212 SLCL Security Leasing Corporation Ltd NC by nature
213 AEL Arshad Energy Ltd **
214 HUBC Hub Power Company Ltd **
215 EPQL Engro Powergen Qadirpur Ltd **
216 LPL Lalpir Power Ltd **
217 NPL Nishat Power Limited **
218 KAPCO Kot Addu Power Company **
219 NCPL Nishat Chunian Power Ltd **
220 PKGP Pakgen Power Ltd **
221 TSPL Tri-Star Power Ltd **
222 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 2018/2019.

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

  1. Based on September-2018 accounts
  2. Based on November-2018 accounts
  3. As per last available annual / half-yearly accounts