The Pakistan Stock Exchange (PSX) has launched a public consultation on the country’s first-ever Sustainability Index, a proposed benchmark aimed at evaluating the environmental, social, and governance (ESG) performance of listed companies.
In a statement issued on Monday, PSX released a concept paper outlining the proposed PSX Sustainability Index (PSI) and invited stakeholders to submit feedback by July 17, 2026. The exchange said the initiative is a key step toward promoting sustainable finance and improving ESG practices across Pakistan’s capital markets.
The proposed index will identify listed companies that effectively manage financially material ESG risks and opportunities. It will use a total return methodology and sector-specific weighting to ensure companies are assessed according to the sustainability factors most relevant to their industries.
PSX Chief Executive Officer Farrukh Sabzwari said ESG factors are increasingly influencing corporate valuations, capital allocation, and long-term risk assessment. He added that the new index aims to provide investors with a transparent and internationally comparable benchmark for evaluating companies with stronger long-term resilience.
Background: The initiative comes as global financial markets increasingly shift toward sustainable investing, with ESG-based indices becoming a key tool for institutional investors and fund managers. PSX’s proposed index is expected to align Pakistan’s capital market with international sustainability standards.
The exchange said the index will help listed companies gain visibility among responsible investors while also enabling asset managers to develop ESG-focused investment products. It will further assist investors in identifying firms with stronger governance and sustainability practices.
PSX has invited written feedback from stakeholders as part of the consultation process. Once finalized, the Sustainability Index is expected to become a key benchmark for sustainable investing in Pakistan.
