Gold Exchange Trading Fund sees no progress yet, PSX CEO says as Pakistan Stock Exchange officials shared updates on market reforms, settlement upgrades, listings pipeline, and digital data initiatives during a press briefing.
PSX Market Reaches Historic Level
Chief Executive Officer of the Pakistan Stock Exchange, Farrukh Sabzwari, stated that the market achieved a historic milestone in January 2026.
According to him, the benchmark index crossed the 123,400 level — marking one of the highest points in the exchange’s trading history. The surge reflects improved investor confidence, liquidity inflows, and macroeconomic stabilization signals.
No Progress on Gold ETF
Addressing commodity market developments, Sabzwari said there has been no advancement so far on launching a Gold Exchange Trading Fund (ETF).
He clarified that commodities trading falls under the jurisdiction of the Pakistan Mercantile Exchange, which oversees commodity-linked financial instruments.
While investor interest in gold-backed securities remains strong, regulatory, structural, and market readiness factors continue to influence product rollout timelines.
AI Data and Market Technology Initiatives
Sabzwari also revealed that the exchange is working on artificial intelligence–linked initiatives, particularly through third-party data vending partnerships.
The goal is to enhance data analytics, investor insights, and automated trading intelligence within Pakistan’s capital markets ecosystem.
Technology integration is increasingly being viewed as essential for global competitiveness and institutional investor participation.
T+1 Settlement System Implemented
A major structural reform highlighted during the briefing was the transition to the T+1 settlement cycle.
Sabzwari said the move represents the culmination of a 25-year evolution — from T+5 to T+1 settlement timelines.
The first T+1 trades have already been successfully settled through coordinated efforts involving:
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Securities and Exchange Commission of Pakistan
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National Clearing Company of Pakistan Limited
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Central Depository Company
Investor Benefits of Faster Settlement
Under the T+1 model, investors now receive securities delivery on the next business day after a transaction.
Officials say the upgrade will:
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Reduce settlement delays
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Lower credit risk
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Improve liquidity flows
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Enhance trading efficiency
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Strengthen investor confidence
Faster settlement cycles also allow quicker reinvestment of capital, supporting overall market activity.
Global Alignment in Settlement Cycles
Sabzwari noted that Pakistan now joins several major markets that have adopted T+1 systems, including:
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United States
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China
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Canada
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India
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Mexico
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Jamaica
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Argentina
The shift aligns Pakistan’s equity market infrastructure with international trading standards.
NCCPL Confirms System Impact
Naveed Qazi, CEO of the National Clearing Company, said Pakistan has become the eighth country globally to implement T+1 settlement.
He added that multiple European markets are also expected to transition to T+1 by 2027.
Initial settlement data shows:
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931 million shares traded
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Transaction value: Rs60 billion
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Net settlement value: Rs20 billion
Depository Infrastructure Strength
CEO of the Central Depository Company, Badiuddin Akber, said Pakistan’s capital market infrastructure remains globally aligned despite its smaller size.
He revealed that CDC currently holds:
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Rs16 trillion in securities assets
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Rs4.5 trillion in mutual fund assets
Settlement adjustments under T+1 were completed within 48 hours during the transition phase.
Future Outlook: Toward T+0?
Responding to questions, officials said moving toward T+0 (same-day settlement) would require major IT modernization and payment system upgrades.
Examples such as China’s partial T+0 adoption were cited, though experts say full implementation would demand substantial technological investment.
Listings and Global Recognition
Sabzwari also disclosed that 12 new companies are expected to list on PSX this year.
Additionally, the exchange has secured full membership of the World Federation of Exchanges — a step expected to enhance global credibility and foreign investor engagement.