Once dominated by institutional players and high-net-worth individuals, the PSX is experiencing a surge of interest from younger, digitally savvy retail investors.
To understand the mechanics driving this shift, and how retail participation is evolving, we spoke with Muhammad Sohail, chief executive officer of Topline Securities. He broke down the real numbers behind active accounts, the impact of SECP-led digital onboarding, and why financial literacy remains the ultimate hurdle for Pakistan’s capital markets.
Question: To start off, could you share the current numbers on active retail investors at the PSX?
Muhammad Sohail: I don’t have the exact official figure on hand—the stock exchange management would be best suited to give the precise count—but my estimate is that active traders are close to 100,000 right now.
To put that into context, there are now over 600,000 total Unique Identification Number (UIN) accounts registered. That means less than 15 per cent are actively trading on a regular basis. While that percentage might seem modest, it represents a massive leap compared to where we were just two or three years ago. Back then, there were only around 300,000 total UIN accounts, and active accounts hovered between 40,000 and 50,000. Total account registrations have essentially doubled, and active participation has likely doubled alongside it.
Q: Account creation has effectively doubled in a short span. What are the primary drivers behind this retail influx?
MS: In my view, it comes down to two major factors. First, overall stock market performance has been strong, which naturally draws interest. Second, the account opening process has been dramatically simplified.
Previously, opening an investor account required visiting a physical office and going through tedious manual steps, like physically stamping a thumb impression. OTP verifications were slow and cumbersome. Today, regulators—the Securities and Exchange Commission of Pakistan (SECP) along with the exchange—have made the process vastly more efficient. An account can now be opened entirely from home in 15 to 30 minutes using brokerage mobile apps or web portals. The SECP is even working on enabling instant onboarding—similar to digital bank accounts where a quick biometric scan on your phone opens an account immediately.
Q: We’re also seeing telecom platforms and fintechs offering micro-investments, such as T-bill purchases via JazzCash. Are digital banks and fintech platforms driving the bulk of these new entrants?
MS: Absolutely. Investors are coming in through telecom channels and digital platforms too, supported by traditional brokerage apps and online portals. By leveraging these tech-driven channels, the regulatory and verification processes become much smoother, reducing the traditional operational burden around Know Your Customer (KYC) requirements.
Q: Gen Z and Millennials are said to be driving a major portion of these new accounts. Is that accurate, and what does their typical investment profile look like?
MS: Yes, the majority of newly opened accounts belong to young investors under 30 years of age. Their ticket sizes are small, but that is entirely expected. Most young entrants are starting with Rs10,000 to Rs25,000—and in many cases, as little as Rs5,000. The beauty of the equity market is its accessibility: you don’t need a massive fortune to start building a portfolio. Whether a stock is priced at Rs5 or Rs5000, an investor can buy a single share or a thousand shares based on what they can afford. If a young person invests Rs5,000 spare cash and earns a 20pc return, that Rs1,000 return establishes the habit of saving and investing.
Q: Historically, Pakistan’s stock market has struggled to achieve deep retail penetration compared to regional and global peers. What has held small investors back?
MS: There are two fundamental barriers. The first is macro instability. Historically, political and economic volatility created extreme market swings. Small retail investors seek consistency; prolonged volatility scares them away.
The second barrier is a widespread lack of financial literacy and awareness. Many people simply do not understand basic wealth management concepts. Millions keep their savings sitting in low-yield bank accounts, unaware that banks are earning 12pc or more on those deposits while returning very little to the depositor. There is a lack of understanding that allocating funds into good investment vehicles can yield 15pc to 20pc returns over time.
Q: How attractive have payouts and capital growth been over the past few years?
MS: Over the recent three-year bull run, the benchmark stock market index (KSE-100) expanded from around 40,000 points to 160,000 points—a fourfold increase. An investment of Rs100 effectively became Rs400 over three years.
If you look beyond short-term rallies at the long-term historical track record over 30 to 40 years, the PSX has delivered an average annualised return between 15pc and 20pc.
Q: Many local investors prefer real estate over stocks under the belief that real estate yields higher returns. How do you respond to that comparison?
MS: Real estate can yield strong nominal gains, but it comes with severe structural risks and high barriers to entry. Property transactions carry risks of fake documentation, title disputes, and illiquidity. More importantly, you cannot buy real estate with Rs10,000 or Rs50,000.
The stock market is strictly regulated, fraud risks are minimal, and it provides immediate liquidity. It allows anyone—regardless of income bracket—to participate in economic growth. Furthermore, for those who prefer indirect exposure, the mutual fund and pension fund industries have expanded rapidly, offering professionally managed portfolios that now serve hundreds of thousands of retail accounts.
Published in Dawn, The Business and Finance Weekly, November 2nd, 2026
