What happened
Pakistan’s capital market moved to a T+1 settlement cycle on 9 February 2026, with eligible trades at the Pakistan Stock Exchange (PSX) now settling one business day after execution instead of the previous T+2 cycle, the Associated Press of Pakistan reported on 10 February.
The Securities and Exchange Commission of Pakistan (SECP) said the change was implemented with the PSX, the National Clearing Company of Pakistan Limited (NCCPL), the Central Depository Company (CDC), the Pakistan Stock Brokers Association, the State Bank of Pakistan, the Pakistan Banks Association, the Mutual Fund Association of Pakistan, brokers, custodian clearing members, asset managers, settling banks and other market participants.
SECP Chairman Dr Kabir Ahmed Sidhu said the reform brought Pakistan’s capital market to par with modern jurisdictions by accelerating trade settlement, reducing counterparty and market risk and enhancing liquidity. He said the adoption of T+1 would strengthen investor confidence and align the market with international standards.
Why it matters
According to the release, the shorter cycle gives investors faster access to funds and securities and improves liquidity, while reducing settlement and counterparty risk by cutting the time during which trades are exposed. Officials said quicker finalisation of trades strengthens confidence, particularly among institutional and foreign investors.
The release said Pakistan joins markets including the United States, Canada, Mexico, Argentina, Jamaica and China that have already adopted shorter settlement cycles, while Europe, the United Kingdom and Switzerland are expected to follow in 2027. It said moving early positions Pakistan ahead of several advanced markets.
What is still uncertain
The announcement did not disclose trading volumes, settlement failure rates or other operational data from the first day of the new cycle, and it did not set out a public timetable for evaluating whether the reform has reduced failed trades or costs for investors.
Sources & reporting notes
This article summarises published reporting, not eyewitness coverage. Sources were reviewed on 10 February 2026.
- Associated Press of Pakistan — "Pakistan capital market successfully transitions to the T+1 settlement cycle"10 February 2026 · Reports the 9 February 2026 shift to T+1 settlement, the participating institutions and the SECP chairman's comments.
.jpg){kind=link}