Pakistan Stock Exchange Limited (PSX) released a Concept Paper on the PSX Sustainability Index (PSI), marking a defining milestone in Pakistan’s journey toward mainstream sustainable finance. The PSI is a proposed benchmark designed to identify and measure the performance of listed companies that embed financially relevant and material environmental, social, and governance risks and opportunities in their business models.
Commenting on the development, Mr. Farrukh Sabzwari, Chief Executive Officer of Pakistan Stock Exchange, said: “ESG is no longer a conversation held at the margins of capital markets; it is increasingly central to how companies are valued, how capital is allocated, and how long-term risks are priced. The PSX Sustainability Index is our commitment to giving Pakistan’s capital markets a credible, transparent, and internationally comparable tool to identify companies that are not simply performing today but are building the resilience to perform tomorrow.”
The PSI is designed as a total-return performance benchmark, applying a rigorous, materiality-adjusted scoring methodology across Environmental, Social, and Governance pillars. Sector-specific factor weights ensure that companies are assessed against the risks and opportunities that are genuinely financially relevant to their businesses, rather than a uniform checklist applied indiscriminately across industries.
The Index is relevant to listed companies seeking recognition and access to responsible capital, asset managers and institutional investors building ESG-aligned products on a credible benchmark, and investors seeking structured exposure to companies with sustainable business models.
PSX believes that broad market consultation is essential to building an index that reflects the realities of Pakistan’s corporate landscape, accommodates the current state of sustainability disclosure, and sets a clear and achievable improvement pathway for companies across all sectors.
Stakeholders are invited to submit written comments no later than 17 July 2026, via email to pd@psx.com.pk. The Concept Paper is available on the PSX website at: https://dps.psx.com.pk/download/attachment/279463-1.pdf
