KARACHI: In a major milestone, Pakistan Stock Exchange (PSX) has initiated work to upgrade its cash-based trading system, scheduling halving time to settle payments against buy and sell of stocks to one day from February 2026.
The transition to T+1 (transaction in one day) settlement cycle, from T+2 at present, would improve liquidity in the market, enable investors to make investment decisions swiftly and increase trade activities at the bourse. This also improves Pakistan’s (PSX) image in the world, particularly in the eyes of global investors, it was learnt.
While speaking at the PSX trading hall on Monday, Securities and Exchange Commission of Pakistan’s (SECP) chairman, Akif Saeed, announced that PSX would move to T+1 settlement cycle with effect from February 9, 2026.
The event was organised by National Clearing Company of Pakistan Limited (NCCPL), which remains the centre of clearing and settlement of stocks at PSX.
Central Depository Company (CDC) and banks, including foreign ones, were among other partners and stakeholders of the new settlement system.
Saeed said that it took around one year for all the stakeholders to agree upon the working model and concept to move to the advanced global settlement cycle. “The implementation will also be a time-consuming exercise…February 9th, 2026, will be the day you will move from T+2 to T+1 (settlement cycle).”
The transition would improve liquidity at brokers and investors’ levels, while foreign investors remain a major chunk of the stock market, though their stakes have gone down in listed companies at PSX, he added.
PSX chairperson Dr Shamshad Akhtar said that the transition of Pakistan’s capital market to the T+1 settlement cycle marks a milestone. “This move symbolises our collective commitment to innovation, efficiency, and global integration.”
She said that the adoption of T+1 brings PSX at par with comparators.
Pakistan’s move to a T+1 settlement cycle is not an isolated incident; rather, it is part of a broader global momentum towards building faster and more efficient financial markets, she said.
India completed its transition to T+1 in early 2023, setting a bold example for other emerging and developed economies. The United States and Canada made their shift in May 2024. Europe, the UK, and Switzerland have announced plans to adopt T+1 by 2027.
Meanwhile, markets such as China and Hong Kong are already operating on a same-day settlement cycle.
“Pakistan’s inclusion in this group is not only timely - it is strategic. It places our country on the global map as a capital market that is ready to compete, innovate, and lead,” she said.
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