The Securities and Exchange Commission of Pakistan (SECP) has kicked off a consultation process to explore the introduction of a T+1 settlement cycle, which could allow stock transactions to settle within a single day. The regulator said it will carefully review the challenges, including possible impacts on market liquidity, before moving forward.

SECP highlighted that limited banking hours and delays in cheque clearance during Ramadan underscored the need for a faster, more efficient settlement system. Officials stressed that adopting T+1 is essential for making the capital market more responsive and functional.

Globally, T+1 settlements are already in use in markets like the United States, Canada, and Mexico, while other major exchanges are in the process of switching to this faster model. The SECP plans to consult all market stakeholders and will develop a comprehensive roadmap after gathering feedback.