In a landmark development for Pakistan’s capital market, the Securities and Exchange Commission of Pakistan (SECP) has officially announced the implementation date for transitioning the country’s stock market to a T+1 settlement cycle. Effective February 9, 2026, all securities traded on the Pakistan Stock Exchange (PSX) will settle on a T+1 basis, replacing the existing T+2 framework. This strategic move aligns Pakistan with the growing list of global markets that are shifting toward shorter settlement cycles to improve efficiency and reduce systemic risks.
The announcement was made at a formal event held at the PSX Building in Karachi, attended by top officials from the Pakistan Stock Exchange, National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), as well as representatives from banks, securities brokerages, and industry associations. The ceremony marked a pivotal moment for Pakistan’s capital market as it takes a significant leap toward modernization and international best practices.
Chairman of the SECP emphasized the transformational potential of this transition, highlighting that a shorter settlement cycle will enhance the overall investor experience. It is expected to reduce credit risk, market risk, and liquidity risk associated with trading and settlement processes. T+1 means that trades executed on a given day will be settled on the next working day, making the capital markets more agile and responsive.
Ms. Shamshad Akhtar, Chairperson of the Pakistan Stock Exchange, echoed the sentiment, noting that the move to T+1 will contribute to building investor confidence and aligning Pakistan’s market structure with those of advanced global economies. Mr. Naveed Qazi, CEO of NCCPL, also expressed strong support for the initiative, outlining the technical and operational readiness of market infrastructure institutions to facilitate a smooth transition.
The shift to T+1 settlement is viewed as a game-changer for both local and foreign investors. It provides a faster turnaround for capital utilization and improves overall market liquidity, thereby encouraging more participation and trading activity. In recent years, several major economies including the United States, Canada, and India have either transitioned or announced plans to move to a T+1 settlement cycle. By following suit, Pakistan positions itself as a forward-thinking market ready to adopt global standards and improve market dynamics.
Industry experts believe this development will positively impact portfolio management, risk mitigation, and the efficiency of post-trade processing. Moreover, the move can also attract institutional investors who prioritize robust and timely settlement mechanisms when entering emerging markets.
The SECP’s proactive regulatory approach and close coordination with PSX, NCCPL, and CDC underscore its commitment to reform and innovation in the capital markets. The successful implementation of the T+1 framework will mark a significant milestone in the evolution of Pakistan’s financial ecosystem.
With February 9, 2026, now set as the official go-live date, stakeholders across the financial sector are gearing up for a new era of speed, security, and investor empowerment in Pakistan’s capital market.
