Karachi, April 22, 2025 – The Pakistan Stock Exchange (PSX) has officially unveiled its comprehensive criteria for selecting the Top 25 companies for the years 2024 and 2025, aiming to recognize the best-performing and most compliant firms on the exchange.
This initiative reflects PSX’s continued commitment to transparency, good governance, and investor confidence in listed companies.
In a formal communication issued to listed companies, the PSX outlined several prerequisites that must be fulfilled for a firm to even be considered among the Top. These include being listed on the exchange for at least one full financial year, declaring a minimum of 30% in dividends with at least 15% as cash, and maintaining trading activity on at least 75% of the total trading days. Additionally, companies must steer clear of regulatory penalties, avoid suspension or non-compliance status, and conduct timely elections of directors.
Firms meeting these initial conditions will then be evaluated through a comprehensive point-based system, assigning marks to various financial, market, and governance indicators.
The quantitative criteria assess performance using profitability ratios like Return on Equity, Net Profit Margin, and Operating Margin, each carrying 5% weight. Liquidity, dividend payout, solvency, free-float, and turnover of shares also contribute significantly to a company’s overall score.
The qualitative metrics evaluate corporate social responsibility, sustainable development goals (SDGs), enterprise risk management, diversity and inclusion, and corporate governance practices. For instance, to earn full marks under CSR, a company must donate at least 1% of its post-tax profits. Reporting on at least five out of seven designated SDGs—ranging from gender equality to climate action—is also required.
PSX has also emphasized robust corporate governance, awarding marks for timely disclosures, early credit of dividends, regular corporate briefings, and the completion of directors’ training programs. The presence of independent directors and diversity in leadership is also part of the evaluation framework.
This detailed methodology ensures that the Top 25 companies selected are not only financially strong but also socially responsible and compliant with regulatory standards. According to PSX officials, this recognition will continue to act as a benchmark for excellence across the exchange.
The complete criteria are now accessible on the official PSX website www.psx.com.pk, offering all listed companies a clear roadmap to qualify for future rankings. By setting high standards for inclusion, PSX reinforces its role in encouraging excellence, sustainability, and transparency among the Top corporate performers in Pakistan.