To invest in the Pakistan Stock Exchange (PSX), you open an account with a PSX-registered broker, get a CDC account to hold your shares, fund the broker account and place a buy order. With a Sahulat account you need only your CNIC and a simple form, and you can buy up to Rs 3 million. Shares you buy today settle in your account the next working day.
This guide takes you through each step, the costs and the tax you pay in 2026-27, and the risks. It does not recommend any stock or any broker.
What Are PSX and the KSE-100?
PSX is Pakistan’s stock exchange. Companies list their shares there, and you buy and sell those shares through a licensed broker. When you buy a share, you own a small part of that company. Its price moves with the company’s results and with the market’s mood.
The KSE-100 is the index people quote as “the market”. It tracks the largest companies on the exchange by market value, and PSX says it represents about 85% of the exchange’s total market capitalization. It rises and falls each day. It is a scoreboard for the market, not an account you can buy directly.
Step 1: Choose a registered broker
Only a broker that PSX recognises and the Securities and Exchange Commission of Pakistan (SECP) licenses can trade for you. PSX calls these brokers TREC holders (Trading Right Entitlement Certificate). PSX publishes the list of TREC holders, with a separate list of brokers that open accounts online and a list of Shariah-compliant brokerage houses, on its new investors page. The TREC holders list is the one to check.
Check three things before you sign up:
- The broker appears on the PSX TREC holders list and is not marked “Under Suspension”. SECP also posts a register of valid broker licences on its capital markets data page, so check the date shown on it before you rely on it.
- The broker gives you a written list of commission, transaction fees and CDC charges. PSX tells investors to ask for it.
- The broker offers the trading channel you want, such as a mobile app or online terminal, plus trade confirmations and a way to reach support.
Brokers choose their own commission inside a range that PSX sets (see What it costs), so compare at least two.
Step 2: Understand the accounts you need
You need a brokerage account in your own name, and a place to hold the shares. PSX describes two choices at the Central Depository Company (CDC), which keeps shares in electronic form:
- A CDC sub-account, which sits under your broker’s account. It is the standard option.
- A CDC investor account, which you hold directly with CDC. PSX says it is more secure than a sub-account, because your shares move only when you give a transaction order.
You also get a Unique Identity Number (UIN) from the National Clearing Company of Pakistan Limited (NCCPL). Your broker arranges it as part of account opening.
Step 3: The Sahulat account for small investors
The Sahulat account is a simplified account for retail investors, including students and homemakers. PSX lists these rules:
- You need a simplified account opening form and a copy of your CNIC.
- Purchases are capped at Rs 3,000,000 per brokerage account. SECP raised the cap from Rs 1 million in March 2026.
- You can sell shares up to their full value.
- It is for one person, with no joint holder.
- You can hold one Sahulat account with each broker, and accounts with several brokers are allowed.
- Leveraged products are restricted: margin trading, margin financing, stock lending and borrowing, and the negotiated deals market.
- You can convert it to a normal trading account at any time.
- It is for resident Pakistanis, and SECP’s Circular 19 of 2026 says no foreign remittance is allowed into it.
For a first-time investor, the restriction on borrowing is a protection. You cannot buy on credit by accident.
Step 4: Gather documents and open the account
For a normal individual account, PSX lists attested copies of your national identity card, plus the identity cards of any joint holder or nominee. Overseas Pakistanis need attested passport copies. If someone else will place orders for you, you also need a letter of authorization. Brokers also ask for your bank account number (IBAN) and, for a normal account, proof of your income or source of funds. SECP’s Circular 19 of 2026 says a Sahulat account needs no proof of income.
You can open the account online. The CDC’s digital platform is called Asaan Connect (the rebranded Centralized Gateway Portal). It lets you complete KYC once and connect to many brokers, mutual funds and insurers, and it checks your identity against NADRA. CDC explains it on its Asaan Connect page, and the portal is at asaanconnect.com. SECP’s Circular 19 of 2026 sets deadlines for brokers to connect and to decide on applications. The Asaan Connect guide lists them, and some brokers may not have caught up yet.
Step 5: Fund the account
PSX advises that you deposit money by cheque, and says it should not be a cash deposit. In practice that means a bank transfer or cheque from your own account, which also leaves a record. SECP’s Circular 19 of 2026 says that when a broker verifies you through your IBAN, your payments must go through a bank or wallet account in your own name. Keep the payment receipt until your broker confirms it.
Step 6: Place your first order
Log in to your broker’s app or terminal, or call the broker’s dealer. Then:
- Search the company by its stock symbol.
- Enter the number of shares.
- Choose a limit order (you name the highest price you will pay) or a market order (you accept the current price). A limit order protects you from a sudden jump.
- Review the total, including commission, and confirm.
Since 9 February 2026, trades at PSX settle on a T+1 basis, as NCCPL confirms. That means the shares reach your CDC account one working day after the trade, down from two. PSX says to check that bought shares arrive in your CDC account on the settlement day. If they do not, call the broker.
How Much Does It Cost to Invest in PSX?
Brokerage commission is set by each firm, inside a range in the PSX Rule Book (Annexure III, edition of August 2025). For a normal ready-market trade the minimum is 3 paisa per share or 0.15% of the trade value, whichever is higher, and the maximum is 2.5% of the trade value. The commission is charged on top of levies, and each broker picks its own rate within that range.
CDC’s fee schedule (updated August 2026) shows no fee to open a sub-account, including a Sahulat one. CDC bills its transaction and custody fees to the broker, who is the CDC participant. A direct CDC investor account has its own schedule, with an annual fee for individuals that is waived in the first year. PSX tells you to ask your broker for a written list of its fees, commission and CDC charges. PSX, NCCPL and SECP do not publish one rate card for exchange levies, so use your broker’s list.
Tax matters more than fees. For individuals in 2026-27:
- Capital gains tax on shares bought on or after 1 July 2024 is 15%, if you are on the FBR Active Taxpayers List both when you buy and when you sell. NCCPL’s 2026-27 rate table shows 30% for investors who are not on the list.
- Dividend tax is 15% in the general case. It is 25% when the company paid no tax because of an exemption, carried-forward losses or tax credits. Filers are those on the Active Taxpayers List. For persons not on it, the Tenth Schedule of the Income Tax Ordinance increases tax deducted at source by 100% of the normal rate, so 15% becomes 30%. The dividend tax calculator works it out for shares, funds and REITs.
You do not work out the capital gains tax yourself. NCCPL calculates it on your sales, collects it each month through your broker, pays it to FBR and issues an annual capital gains certificate that you can use with your tax return.
A worked case: a Rs 100,000 gain on shares you bought after 1 July 2024 costs a filer Rs 15,000 in tax. A Rs 10,000 dividend costs a filer Rs 1,500 and a non-filer Rs 3,000.
Finance Act 2026 left these rates as they were. The full tables are in the Income Tax Ordinance 2001 (First Schedule, Part I, Divisions III and VII, and the Tenth Schedule) and the Finance Act 2026.
What Are the Risks of Investing in PSX?
Share prices can fall, and nothing guarantees you will get your money back. A single company can drop sharply on bad results. Spread your money across several companies or buy a fund, and invest only money you will not need for a few years.
Be careful with anyone who promises fixed returns on shares. A registered broker does not promise profit. Check the broker on the PSX list before you send money. Compare shares with other options in Ways to Invest in Pakistan, and see how regular monthly buying could work with the SIP calculator.
Common questions
How much money do I need to start investing in PSX?
The PSX Sahulat page lists no minimum balance, so the floor is the price of one share plus costs. Brokers may set their own minimum, so ask.
Can a student open a PSX account?
Yes. PSX says the Sahulat account is open to retail investors, including students and homemakers. An adult uses a CNIC. SECP’s Circular 19 of 2026 also lists a minor account for resident Pakistanis under 18, which follows PSX guidelines, so ask a broker how it works for you.
What is the difference between a CDC sub-account and an investor account?
A sub-account sits under your broker. An investor account is directly yours at CDC, and PSX says it is more secure because your shares move only on your own order.
Do I need to be a tax filer?
No, but it costs you. Filers pay 15% capital gains tax on shares bought after 1 July 2024, while NCCPL’s table shows 30% for non-filers, and dividend tax at source is doubled for non-filers.
Can overseas Pakistanis invest in PSX?
Yes. PSX lists attested passport copies for non-residents. Ask your broker which documents it accepts and whether it opens accounts remotely.