PAKISTAN: PSX Transitions to the T+1 Settlement Cycle

Wednesday February 11 2026

On 10^th February 2026, Pakistan Stock Exchange Limited (PSX) announced that it has officially transitioned to the T+1 settlement cycle, a landmark reform that strengthens efficiency, reduces risk and aligns the country with international best practices. Effective from February 9^th, 2026, all eligible trades at the Pakistan Stock Exchange (PSX) are settled on a Trade plus one (T+1) basis, replacing the previous T+2 cycle.

The transition has been implemented under the guidance of the Securities and Exchange Commission of Pakistan (SECP), through close collaboration among Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), Pakistan Stock Brokers Association (PSBA), State Bank of Pakistan (SBP), Pakistan Banks Association (PBA), Mutual Fund Association of Pakistan (MUFAP), securities brokers, custodian clearing members, asset management companies, settling banks, E-Clear and other non-broker clearing members.

The transition to the T+1 settlement cycle brings important advantages for Pakistan’s capital market. It enables faster access to funds and securities, improving liquidity, while reducing settlement and counterparty risk through shorter exposure periods. Quicker trade finalization enhances efficiency and the reform strengthens investor confidence, particularly among institutional and foreign investors. Together, these benefits support a stronger and more resilient market aligned with global best practices.

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