KARACHI – The Securities and Exchange Commission of Pakistan (SECP) has announced February 9, 2026, as the implementation date for the transition from T+2 to T+1 settlement cycle for securities traded at the Pakistan Stock Exchange (PSX).
The announcement was made at a ceremony held in Karachi, where several key market participants, including PSX, NCCPL, CDC, PMEX, securities brokers, banks, and industry associations were present.
This transition marks a major milestone while abiding by SECP’s broader agenda to protect investor interests through greater speed, transparency, and increased market efficiency. It also benefits market participants by significantly reducing the credit and market risk.
Furthermore, this shift is expected to significantly improve market liquidity as trades will now be settled faster, lowering the likelihood of default due to market volatility or operational issues.
The Chairman of SECP highlighted Pakistan’s early adoption of the T+1 settlement cycle by following in the footsteps of developed and emerging markets such as the USA, China, Canada, Mexico, and Argentina. He further emphasised that Pakistan’s alignment with global best practices reflects the increasing maturity, readiness, and resilience of its capital markets.
Under SECP’s guidance, NCCPL has actively led the transition through close coordination with key market stakeholders. To support this process, an implementation committee was formed comprising representatives from SECP, CMIIs, custodian banks and securities brokers to ensure a smooth, well-coordinated shift to the T+1 settlement cycle. Detailed consultations were also held with foreign investors in this regard.
In the lead-up to the implementation, the Chairman advised all market participants to begin reviewing their operational readiness in order for them to identify and address any potential challenges well in time. Further, to facilitate this process, NCCPL has prepared a roadmap outlining the proposed T+1 settlement mechanism and detailed procedural guidance to enable a smooth transition while minimising operational risk.
