Pakistan’s capital market will move to a faster settlement regime as the Pakistan Stock Exchange transitions from a T+2 to a T+1 settlement cycle, effective February 9, 2026, according to a news report.Â
The reform, led by the Securities and Exchange Commission of Pakistan, will shorten the settlement period for securities transactions to one business day, allowing shares bought on a trading day to be credited the next day, while sale proceeds are received within 24 hours.
Regulators said the move brings Pakistan in line with international practices, with markets such as the United States and India already operating under a T+1 settlement framework. The shorter cycle is also expected to improve the appeal of the local market for foreign institutional investors.
Market participants said the change is expected to improve operational efficiency and reduce counterparty risk by narrowing the settlement window. Faster settlements are also likely to enhance liquidity by enabling investors to redeploy capital more quickly.
The transition follows coordination among key market institutions, including the National Clearing Company of Pakistan Limited and the Central Depository Company, alongside industry bodies representing brokers, banks and asset managers.
Officials described the shift to T+1 as a key step in the ongoing modernisation of Pakistan’s capital markets, aimed at strengthening efficiency, transparency and risk management across the trading and settlement system.
