The Pakistan Stock Exchange (PSX) has officially moved to a T+1 settlement cycle, marking a major reform in the country’s capital market. Effective February 9, 2026, all eligible trades are now settled on a Trade plus one (T+1) basis, replacing the previous T+2 system.
The transition reduces settlement and counterparty risk, improves liquidity, and allows faster access to funds and securities. Shorter trade finalization periods enhance market efficiency and strengthen investor confidence, especially among institutional and foreign investors.
The reform was implemented under the guidance of the Securities and Exchange Commission of Pakistan (SECP), with collaboration from PSX, NCCPL, CDC, banks, brokers, and asset management companies.
By adopting T+1 early, Pakistan aligns with advanced markets like the US, Canada, Mexico, China, and Argentina, positioning the country ahead of several developed economies in capital market modernization.
Dr. Kabir Ahmed Sidhu, SECP Chairman, praised all stakeholders for their role in the successful implementation. He stated:
“The T+1 reform accelerates trade settlement, reduces market risks, improves liquidity, and aligns Pakistan’s capital market with international best practices.”
This milestone reflects SECP’s commitment to modernizing capital markets, reducing systemic risks, and protecting investors.
