PSX to shift to T+1 settlement cycle from February 9, 2026

The Pakistan Stock Exchange (PSX) is transitioning to a T+1 settlement cycle, effective February 9, 2026, as announced in a recent report. This reform, spearheaded by the Securities and Exchange Commission of Pakistan, will reduce the settlement period for securities transactions to one business day, meaning shares will be credited the day after trading and sale proceeds received within 24 hours. This change aligns Pakistan with markets like the United States and India, and is anticipated to attract more foreign institutional investors.

Market participants believe the shift will enhance operational efficiency and reduce counterparty risk by shortening the settlement window, while also boosting liquidity by allowing investors to redeploy capital faster. The transition is the result of collaboration between the National Clearing Company of Pakistan Limited, the Central Depository Company, and industry representatives from brokers, banks, and asset managers.

Officials view the move to T+1 as a crucial step in modernizing Pakistan’s capital markets, aiming to improve efficiency, transparency, and risk management within the trading and settlement system.

(Source：Pakistan Today)