Pakistan’s capital market moves to T+1 settlement cycle

Pakistan’s capital market officially adopted a T+1 settlement cycle on February 9, 2026, meaning trades are now settled one day after the transaction date, replacing the previous T+2 system. This change was implemented under the guidance of the Securities and Exchange Commission of Pakistan (SECP) and in collaboration with key market participants including the Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), and Central Depository Company (CDC).

The move aligns Pakistan with markets like the United States, Canada, and China, which have already adopted shorter settlement cycles, and precedes planned implementations in Europe and the United Kingdom by 2027. The SECP states that the T+1 framework will facilitate faster access to funds and securities, enhance liquidity, and minimize settlement and counterparty risks by shortening exposure periods.

SECP Chairman Dr. Kabir Ahmed Sidhu emphasized that this reform modernizes Pakistan’s capital market, reduces risks, and boosts investor confidence, particularly among institutional and foreign investors. The shift is part of a larger initiative to modernize capital markets, lower systemic risk, and strengthen investor protection.

(Source：Pakistan Today)