Pakistan’s capital market has officially moved to a T+1 settlement cycle, marking a major reform to improve efficiency, reduce risk, and align with international standards. Effective February 9, 2026, all eligible trades at the Pakistan Stock Exchange are now settled on a Trade plus one basis, replacing the previous T+2 cycle.
The Securities and Exchange Commission of Pakistan oversaw the transition in collaboration with the Pakistan Stock Exchange, National Clearing Company of Pakistan Limited, Central Depository Company, Pakistan Stock Brokers Association, State Bank of Pakistan, Pakistan Banks Association, Mutual Fund Association of Pakistan, securities brokers, custodian clearing members, asset management companies, settling banks, E-Clear, and other non-broker clearing members.
By adopting the T+1 settlement cycle, Pakistan aligns with global markets such as the United States, Canada, Mexico, Argentina, Jamaica, and China, while Europe, the UK, and Switzerland are expected to follow by 2027. The reform enables faster access to funds and securities, improving liquidity and reducing settlement and counterparty risks through shorter exposure periods. Quicker trade finalization strengthens market efficiency and investor confidence, particularly among institutional and foreign investors.
SECP Chairman Dr. Kabir Ahmed Sidhu praised the successful implementation by PSX, CDC, and NCCPL, noting that T+1 accelerates trade settlement, reduces systemic and counterparty risks, and enhances liquidity. The reform demonstrates Pakistan’s commitment to modernizing capital markets, protecting investors, and meeting evolving international standards, positioning the country ahead of several advanced markets. All stakeholders were acknowledged for their collaborative efforts in ensuring a smooth transition.