PSX Gears Up for T+1 Settlement Cycle by 2026

The Pakistan Stock Exchange (PSX) has commenced efforts to modernize its trading infrastructure, targeting a reduction in payment settlement times for stock transactions to one day by February 2026. This marks a significant advancement for the exchange.

The shift from the current T+2 (transaction in two days) to a T+1 settlement cycle is anticipated to boost market fluidity, empower investors to make quicker investment choices, and stimulate increased trading activity on the exchange. Moreover, this transition is expected to enhance Pakistan’s standing on the global stage, particularly among international investors.

Speaking at the PSX trading hall on Monday, the Securities and Exchange Commission of Pakistan’s (SECP) chairman, Akif Saeed, stated that the PSX is set to implement the T+1 settlement cycle starting February 9, 2026.

The National Clearing Company of Pakistan Limited (NCCPL), which is central to the clearing and settlement operations at the PSX, organized the event.

Key stakeholders in the new settlement system include the Central Depository Company (CDC) and various banks, including international institutions.

Saeed mentioned that achieving consensus among all stakeholders on the operational framework for adopting this advanced global settlement cycle took approximately a year. He noted, “The implementation will require substantial time…February 9, 2026, will mark the transition from T+2 to T+1 (settlement cycle).”

He further added that the transition is poised to enhance liquidity for both brokers and investors. While foreign investors constitute a significant portion of the stock market, their holdings in PSX-listed companies have decreased.

PSX chairperson Dr. Shamshad Akhtar remarked that the move to the T+1 settlement cycle represents a major achievement for Pakistan’s capital market. “This transition demonstrates our shared dedication to innovation, efficiency, and global integration.”

She emphasized that the adoption of T+1 aligns the PSX with international benchmarks.

Pakistan’s transition to a T+1 settlement cycle is part of a broader global trend toward establishing faster and more effective financial markets, she noted.

India successfully transitioned to T+1 in early 2023, offering a compelling model for both emerging and developed economies. The United States and Canada completed their transitions in May 2024. Europe, the UK, and Switzerland have revealed plans to adopt T+1 by 2027.

Additionally, markets like China and Hong Kong are already functioning with a same-day settlement cycle.

“Pakistan’s inclusion in this movement is not just timely but also strategic. It establishes our nation as a competitive, innovative, and leading capital market on the global stage,” she concluded.