In a landmark move that aligns Pakistan with global financial market standards, the country’s capital market is set to transition from the existing T+2 to a T+1 settlement cycle, effective February 9, 2026. The announcement was jointly made by the National Clearing Company of Pakistan Limited (NCCPL), the Pakistan Stock Exchange (PSX), and the Central Depository Company of Pakistan Limited (CDC), under the regulatory guidance of the Securities and Exchange Commission of Pakistan (SECP).
This historic shift is expected to significantly enhance market efficiency, improve liquidity, and reduce settlement risk by shortening the time between trade execution and final settlement. The transition represents a strong signal of the maturity and modernization of Pakistan’s capital market infrastructure, bringing it in line with international practices being adopted by developed and emerging economies including the United States, Canada, China, Mexico, and Argentina.
The SECP’s Chairman, while announcing the development, highlighted the strategic importance of this transition. He noted that Pakistan’s early adoption of the T+1 cycle reflects growing resilience and readiness in its capital market, and underpins broader efforts to boost investor trust and operational agility.
Dr. Shamshad Akhtar, Chairperson of the PSX Board and former central bank governor, also addressed the event, acknowledging the dedication of teams across institutions that made this achievement possible. She emphasized that this change is not only a technical upgrade but a meaningful step toward a more transparent, efficient, and competitive market environment. According to her, the shift will encourage greater participation from both domestic and international investors by aligning Pakistan’s systems with global capital flow dynamics.
Naveed Qazi, CEO of NCCPL, also underscored the move’s significance by calling it a pivotal development in market structure transformation. He appreciated SECP’s formation of a multi-stakeholder Implementation Committee, which played a critical role in ensuring the transition was smooth, well-coordinated, and inclusive of feedback from all market participants.
The T+1 cycle will allow transactions executed on a given day to be settled the next trading day, effectively enhancing cash flow and freeing up capital for quicker reinvestment. This shorter settlement period also lowers counterparty risk and is expected to enhance investor protection, especially in volatile market conditions.
With the backing of robust regulatory oversight and industry-wide collaboration, this transformation in the settlement framework is poised to open the next chapter in Pakistan’s capital market evolution. It signals a clear intent to embrace global best practices and to create a more dynamic, accessible, and future-ready financial ecosystem.
As Pakistan continues to position itself as an emerging hub for capital flows in the region, reforms like the T+1 transition are essential in making the market more competitive and responsive to the needs of modern-day investors.