Capital markets will become faster as PSX transitions to T+1 settlement

The Pakistan Stock Exchange (PSX) is transitioning to a T+1 settlement cycle on February 9, 2026, a reform initiated by the Securities and Exchange Commission of Pakistan (SECP) to align with international best practices. This change will reduce settlement time from two business days to one, enhancing operational efficiency, risk management, and investor confidence. The faster settlement is expected to reduce counterparty risk, improve market liquidity, and attract foreign investment by mirroring practices in markets like the United States and India.

The transition involves coordinated efforts from key institutions including the National Clearing Company of Pakistan Limited (NCCPL), the Central Depository Company (CDC), and industry associations like MUFAP, PSBA, and the Pakistan Banks Association. Under the new framework, investors will receive shares and sellers will receive funds within 24 hours of trade execution.

Regulators and market participants consider this a significant step in modernizing Pakistan’s capital markets, fostering a more resilient, transparent, and competitive financial ecosystem. The move is anticipated to make the PSX more attractive to investors and reinforce Pakistan’s commitment to global financial standards.

(Source：Business Recorder)