ISLAMABAD: Zahid Latif Khan, Director, Pakistan Mercantile Exchange (PMEX), gave an exclusive interview to Daily Islamabad POST.. Zahid Latif Khan, Chairman of ZLK Group of Companies unveiled Pakistan’s First Shariah Brokerage.
Can you tell about ZLK Islamic Financial Services, when it was established and what makes it unique in Pakistan’s financial landscape?
Zahid Latif Khan: ZLK Islamic Financial Services was established on the blessed date of 29th Ramadan 1445 Hijri, marking a historic milestone as Pakistan’s first and only Shariah-compliant brokerage house approved by the Securities and Exchange Commission of Pakistan (SECP). What sets us apart is our commitment to merging Islamic ethical principles with modern investment solutions. Unlike conventional brokerages, we operate under the strict supervision of SECP-approved Shariah scholars, ensuring every transaction, from equity trading to portfolio management, adheres to the highest standards of Shariah compliance. Our mission is to empower investors with halal, transparent, and socially responsible financial opportunities while upholding the values of integrity and inclusivity.
What inspired you to launch Pakistan’s first Shariah-compliant brokerage?
Zahid Latif Khan: The inspiration came from observing the unmet needs of ethically conscious investors. Many Muslims in Pakistan hesitated to participate in the stock market due to concerns about riba (interest), gharar (uncertainty), and non-compliant businesses. We wanted to create a trusted platform where investors could trade with confidence, knowing their investments adhere to Shariah principles. Our collaboration with SECP-approved Shariah advisors ensured rigorous compliance, setting a new standard in the industry.
How does ZLK Islamic ensure that the stocks and services offered are fully Shariah- compliant?
Zahid Latif Khan: We follow a multi-layered screening process. First, we exclude companies involved in prohibited sectors like alcohol, tobacco, or conventional banking. Second, we apply financial ratios mandated by SECP’s Shariah Governance Regulations 2023, such as ratio of interest-bearing debt to total assets should be less than 37%, ratio of non-compliant Investments to total assets should be less than 33%, non-complaint Income to Total revenue should be less than 5% (this ratio is charity rate or dividend purification rate)
ratio of illiquid assets to total assets should be at least 25%. 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. Also, our Shariah board conducts regular audits, and we purify any impermissible income by donating it to charity. Additionally, our trading practices avoid margin trading, short-selling, and other non- compliant activities.
Interviewer: What distinguishes ZLK Islamic from conventional brokerage firms?
Zahid Latif Khan: Unlike conventional brokerages, we operate entirely within Islamic principles. For example, we don’t offer interest-based leverage or speculative trading. Our platform is tailored to filter only Shariah- compliant stocks, and we provide educational resources to help clients understand the ethical dimensions of their investments. Transparency is key, clients receive detailed reports on how their portfolios align with Shariah criteria.
ZLK Islamic Financial Services logo includes the word “Tawakul”. What does this represent for your company?
Zahid Latif Khan: Tawakul reflects our core belief in trusting Allah while taking responsible action. For us, it means two things: First, we trust in Allah’s guidance to keep our services truly Shariah-compliant. Second, we want our clients to trust us as their ethical investment partner. The word in our logo is a daily reminder that real success comes from this balance—doing our best while relying on Allah’s will. It’s the foundation of everything we do at ZLK Islamic. Just as a believer combines effort with faith, we merge rigorous Shariah compliance with professional excellence, ensuring every investment aligns with Islamic values.
Can non-Muslims invest through ZLK Islamic?
Zahid Latif Khan: Absolutely! Shariah-compliant investing appeals to anyone seeking ethical, socially responsible opportunities. Our clients include non-Muslims who value transparency, low debt exposure, and investments in socially beneficial sectors like healthcare and technology.
What challenges did you face while establishing a Shariah-compliant brokerage in Pakistan?
Zahid Latif Khan: The biggest challenge was building awareness. Many investors were unfamiliar with Shariah-compliant equities or assumed they’d sacrifice returns. We addressed this through workshops, partnerships with Islamic banks, and demonstrating that our screened portfolios often outperform conventional ones due to their focus on low-debt, asset-backed companies. Regulatory alignment with SECP was another hurdle, but our proactive engagement ensured smooth approvals.
How does ZLK Islamic support first-time investors?
Zahid Latif Khan: We prioritize education. Our “Islamic Sahulat Account” allows small investments with minimal paperwork, and guidance on Shariah investing basics. Clients also have access to our research team, which identifies high-growth compliant stocks, and personalized guidance from Shariah advisors.
Tell us about your Roshan Digital Account (RDA) services for overseas Pakistanis.
Zahid Latif Khan: The RDA Equity Investment Account enables non-resident Pakistanis to invest in PSX through Shariah-compliant stocks. We simplified the process. Clients can open accounts digitally, and our platform ensures all trades meet Islamic criteria. This initiative aligns with State Bank of Pakistan’s vision to channel diaspora investments into Pakistan’s economy ethically.
What’s your long-term vision for ZLK Islamic?
Zahid Latif Khan: To become a global leader in Islamic finance, setting benchmarks for innovation and ethical excellence. We envision a future where “halal” and “high-return” are synonymous in the investment world.
, gave an exclusive interview to Daily Islamabad POST.){kind=link}