The PSI was established in 1996 with a view to being recognized by the business community and consumers, both locally and internationally, as the focal point for Palestinian participation in the global system of harmonized standards.

The PSI's mission is to facilitate trade and investment in Palestine by meeting the metrology, standards, testing and quality related needs of the business community while ensuring consumer and environmental safety.

The PSI is a member of AIDMO (Arab Regional Standards Body) and became a subscriber member of ISO in 2001 and a correspondent member in 2004. A number of MOUs have been signed with similar National Standards Bodies in the region.

The PSI is governed by a board of directors from the public and private sectors. In addition to its headquarters in the city of Ramallah, the PSI has three more branches in the cities of Gaza, Nablus and Hebron.