Pakistan's capital market has transitioned to a T+1 settlement cycle, effective from February 9, 2026, marking a significant shift from the previous T+2 system. This change, supervised by the Securities and Exchange Commission of Pakistan (SECP) and coordinated with various financial institutions, aims to enhance market efficiency and align Pakistan with international standards. According to Profit by Pakistan Today, this transition allows for 'faster access to funds and securities, improves liquidity, and reduces settlement and counterparty risk by shortening exposure periods.' The SECP Chairman, Dr. Kabir Ahmed Sidhu, emphasized that this reform 'brings Pakistan’s capital market in line with modern jurisdictions by accelerating settlement timelines.' The move positions Pakistan alongside countries like the United States and China, which have already adopted shorter settlement cycles, and ahead of European markets expected to follow by 2027.