- ZLK empowers investors with Shariah-compliant equities and Sukuk, bridging ethics, growth and financial confidence
An Exclusive interview with Zahid Latif Khan, founding chairman of Zahid Latif Khan Securities and ZLK Islamic Financial Services
PROFILE
Zahid Latif Khan is the founding chairman of Zahid Latif Khan Securities (Private) Limited (ZLK Securities) and ZLK Islamic Financial Services (Private) Limited, the first and premier Shariah Compliant Stock Brokerage firm in Pakistan. Khan’s brokerage firm recognized for its reliability and extensive network across Pakistan, with eleven branches serving clients in Punjab, the Federal Capital, and Khyber Pakhtunkhwa. With over three decades of experience, ZLK Securities caters to both national and international clients, offering top-tier brokerage and financial services through the Pakistan Stock Exchange (PSX) and Pakistan Mercantile Exchange (PMEX).
His leadership extends to several high-profile positions, including Director of ISE Towers REIT Management Company Ltd., Director at Pakistan Mercantile Exchange Limited (PMEX), Senior-Vice Chairman of the Pakistan Stock Brokers Association (PSBA), Independent Director/ Chairman Railways Estate Development and Marketing Company (REDAMCO) appointed by Federal Capital, Director, Global Commodity Trading Platform and Director, National Clearing Company of Pakistan Limited (NCCPL).
Academically, Khan holds Bachelor’s degree in science and holds specialized certifications in capital markets from the United Nations Institute of Training and Research (UNITAR) and the Pakistan Institute of Management, and he is a Certified Director from the Institute of Cost and Management Accountants of Pakistan (ICMA). Since starting his investment career in 1990 and founding his brokerage in 1994, he has played a key role in shaping Pakistan’s capital markets, most notably through his involvement in consolidating the Karachi, Lahore, and Islamabad stock exchanges into the unified Pakistan Stock Exchange (PSX). He also recently participated in the first-ever Directors’ Training Program (DTP) for State-Owned Enterprises (SOEs), conducted by the National School of Public Policy (NSPP).
Beyond his business achievements, Khan is a passionate advocate for financial literacy and inclusivity, actively promoting stock market awareness and signing MoUs with universities to bridge academia and the financial industry. He also serves as the Chairman of the Asian Institute of Eco-Civilization Research and Development (AIERD), focusing on the evolving dynamics of Asia, China, and eco-civilization.
Khan’s contributions to trade, economic relations, and humanitarian causes are equally noteworthy. He previously served as President of the Rawalpindi Chamber of Commerce and Industry and has led multiple international delegations to strengthen bilateral trade ties. Recently, he joined the Hajira Hamza Foundation as a Director, supporting efforts for thalassemia patients, underscoring his commitment to social causes.
PAGE: ZLK Securities has long been recognized as a trusted name in Pakistan’s capital market. How has the company evolved over the years to meet modern investor needs and regulatory advancements?
ZLK: Since its establishment, ZLK Securities has built its reputation on trust, transparency, and strong regulatory compliance. Over the years, Pakistan’s capital market has transformed significantly with digitization, enhanced governance standards, and progressive reforms introduced by the Securities and Exchange Commission of Pakistan and the Pakistan Stock Exchange. We have continuously adapted by investing in advanced trading technology, strengthening our compliance frameworks, improving risk management systems, and expanding investor education initiatives. Most importantly, we recognized the evolving needs of investors who sought ethical and Shariah-aligned investment avenues, which led us to expand our services into Islamic financial solutions.
PAGE: What inspired the inception of ZLK Islamic Financial Services, and how did your personal journey influence its establishment?
ZLK: Throughout my career in the capital markets, I encountered a significant number of individuals who wished to invest but were hesitant due to concerns about Shariah compliance. Personally, I felt there was a strong need for a dedicated and properly supervised Islamic brokerage model that would not only screen securities but also regulate trading practices in accordance with Shariah principles. This conviction led to the establishment of ZLK Islamic Financial Services, designed to provide a fully Shariah-compliant trading ecosystem under qualified Shariah advisory oversight.
PAGE: The process of classifying equities as Shariah-compliant was initiated some years ago. What was the primary objective behind this initiative, and how successful has it been so far?
ZLK: The primary objective was to provide clarity, confidence, and structured guidance to investors who wished to participate in the equity market without compromising their religious principles. Many potential investors remained outside the market due to uncertainty regarding Shariah permissibility. With formal screening criteria introduced under SECP’s Shariah Governance Regulations and adopted by PSX, the market now offers a transparent framework for identifying compliant securities. Today, more than half of the listed companies on PSX qualify as Shariah-compliant, and the PSX-KMI All Share Index includes over 250 companies. This reflects strong progress and increasing investor participation in the Islamic segment of the capital market.
PAGE: What are the key benchmarks and screening criteria used to determine whether a company qualifies as Shariah-compliant?
ZLK: The screening process is comprehensive and includes both qualitative and quantitative assessments. From a qualitative perspective, the company’s core business must be halal and aligned with Shariah principles, excluding sectors such as conventional banking, insurance, alcohol, tobacco, gambling, and other impermissible activities. Quantitatively, financial ratios are carefully examined. Interest-bearing debt must remain below 37 percent of total assets, non-compliant investments must not exceed 33 percent of total assets, and non-compliant income must be less than 5 percent of total revenue. Additionally, illiquid assets must constitute at least 25 percent of total assets, and the market price per share must exceed net liquid assets per share. These benchmarks ensure both operational and financial adherence to Islamic principles.
PAGE: After how many months is the re-screening conducted to ensure continued Shariah compliance, and why is periodic review essential?
ZLK: Re-screening is conducted every six months during the reconstitution of the PSX-KMI All Share Index. Periodic review is critical because a company’s financial structure and income streams can change over time. Continuous monitoring ensures that investors remain compliant and can take timely action if a security’s Shariah status changes. This structured review mechanism reinforces credibility and investor confidence.
PAGE: When did you first recognize the need for a dedicated Shariah-compliant brokerage in Pakistan’s capital market?
ZLK: The need became evident when Islamic banking began expanding rapidly across Pakistan, yet Shariah-compliant equity brokerage services remained limited. Although a substantial portion of PSX-listed companies met Shariah screening criteria, there was no comprehensive brokerage structure ensuring that trading practices themselves were also compliant. This gap highlighted the importance of establishing a dedicated platform aligned entirely with Islamic financial principles.
PAGE: Can you walk us through the internal governance and Shariah advisory process that ensures full compliance at ZLK Islamic Financial Services?
ZLK: Our operations are governed by a structured Shariah governance framework in alignment with SECP’s Shariah Governance Regulations 2023. We operate under the supervision of a qualified Shariah Advisor who oversees screening, trading practices, and product approvals. Trading is restricted strictly to securities listed in the PSX-KMI All Share Index, and prohibited practices such as short selling, day trading, futures contracts, options, and conventional margin financing are not allowed. We ensure T+2 settlement compliance for sales and provide guidance for dividend purification where applicable. Participation in IPOs or book building requires Shariah approval. This layered governance structure ensures both procedural and operational compliance at every stage.
PAGE: What distinguishes ZLK Islamic Financial Services as Pakistan’s first SECP-approved Shariah-compliant equities brokerage firm?
ZLK: What distinguishes us is that we offer not only Shariah-compliant securities but a fully regulated Shariah-compliant trading environment. Our approval framework, structured governance system, restricted trading mechanisms, and advisory oversight collectively ensure comprehensive compliance. We have institutionalized Shariah principles into our operational model rather than treating compliance as a secondary feature.
PAGE: Alongside the introduction of Shariah-compliant brokerage facilities, how many such brokerage houses are currently operational in Pakistan, and how do you assess the industry’s growth?
ZLK: While Islamic finance has grown significantly in banking and asset management, fully dedicated Shariah-compliant brokerage houses remain relatively limited in number. However, industry growth is steadily accelerating as investor awareness increases. Given that more than half of PSX-listed companies qualify as Shariah-compliant and Islamic financial products continue to expand, I see substantial long-term potential for growth in this segment.
PAGE: What has been the response from the brokers’ fraternity and the wider financial community toward Shariah-compliant brokerage services?
ZLK: The response has been positive and progressive. Initially, there was curiosity about how such a model would function within conventional market structures. Over time, however, the broader financial community recognized that Shariah-compliant brokerage services expand market participation and bring previously untapped investors into the system. It complements the overall financial ecosystem rather than competing with it.
PAGE: How do you see Islamic finance shaping the future of Pakistan’s capital markets over the next decade?
ZLK: Islamic finance is poised to play a transformative role in Pakistan’s capital markets over the next decade. With increasing Sukuk issuances, Islamic exchange-traded funds, Shariah-compliant equities, and REIT structures, the Islamic segment is expected to command a growing share of market capitalization. Global trends toward ethical and socially responsible investing further reinforce this direction, positioning Pakistan’s Islamic capital market for sustained expansion.
PAGE: There is growing investor interest in ethical and Shariah-compliant investments. What factors are driving this demand?
ZLK: The demand is driven by increased awareness of Islamic finance principles, the expansion of Islamic banking, regulatory clarity, and a broader global movement toward ethical investing. Investors today are more conscious of where their money is deployed and prefer businesses that align with social responsibility and moral values. Importantly, Shariah-compliant investments appeal not only to Muslims but also to non-Muslim investors seeking disciplined and ethically screened portfolios.
PAGE: Can you elaborate on your Roshan Digital Account services and how they benefit overseas Pakistanis seeking Shariah-compliant investment opportunities?
ZLK: Through Roshan Digital Account facilities, overseas Pakistanis can seamlessly access Shariah-compliant investment opportunities in Pakistan’s capital market without physical presence. We facilitate investment in Shariah-compliant equities, Sukuk, and approved Islamic financial instruments listed on PSX. Investors are provided digital execution, transparent reporting, and guidance on dividend purification where required. This platform enables overseas Pakistanis to contribute to national economic growth while adhering to Islamic financial principles.
PAGE: What challenges did you face during the launch of ZLK Islamic Financial Services, and how were they overcome?
ZLK: The primary challenges included building awareness about Shariah-compliant trading practices, developing a robust internal governance structure, training staff on Islamic financial principles, and ensuring seamless regulatory alignment. We addressed these challenges through continuous engagement with Shariah scholars, regulatory authorities, and market participants. Education and system development played a central role in establishing credibility and operational integrity.
PAGE: What message would you like to share with young and first-time investors who are hesitant to enter the stock market, particularly through Shariah-compliant avenues?
ZLK: My message to young and first-time investors is to approach the market with knowledge, discipline, and patience. The stock market, when navigated responsibly and within Shariah guidelines, is a legitimate and powerful wealth-building tool. Pakistan’s capital market now offers structured Shariah-compliant avenues that eliminate many traditional concerns. Investors should begin with proper education, avoid prohibited practices such as short selling or interest-based financing, and adopt a long-term investment mindset. Ethical investing not only builds financial stability but also contributes positively to society and the economy as a whole.