KARACHI: In a major step towards modernising the country’s capital market, the National Clearing Company of Pakistan Ltd (NCCPL), in collaboration with the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), and under the guidance of the Securities and Exchange Commission of Pakistan (SECP), has announced the formal transition to a T+1 settlement cycle, effective Feb 9, 2026.

The shift from the existing T+2 to the shorter T+1 cycle — where transactions are settled one business day after the trade — is expected to significantly enhance market liquidity, efficiency and investor confidence.

The SECP chairman lauded the move as a sign of Pakistan’s growing market maturity, aligning the country with international practices already adopted by the US, China, Canada, Mexico and Argentina. He noted that this transition places Pakistan among the early adopters in the region and underscores the resilience and readiness of its financial ecosystem.

PSX Board Chairperson Dr Shamshad Akhtar commended the joint effort behind the initiative, paying tribute to the dedication and forward-looking vision of all stakeholders. “The courage to embrace change and belief in the potential of Pakistan’s capital market have paved the way for this strategic reform,” she remarked.

Speaking at the event, NCCPL CEO Naveed Qazi called the transition a “pivotal milestone” in capital market development. He emphasised that the move to a T+1 cycle would streamline post-trade processes and bring Pakistan in line with global efficiency standards. He also acknowledged the SECP’s proactive role in forming an Implementation Committee that included representation from all key stakeholders to ensure a smooth and coordinated transition.

The implementation of the T+1 settlement cycle represents a critical upgrade to the country’s market infrastructure and reinforces investor trust. It is part of a broader global push towards faster, more transparent financial systems and positions Pakistan to attract more domestic and international investment going forward.

Published in Dawn, July 30th, 2025