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Under T+2, broker capital is blocked for two days
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Under T+1, it recycles the next day
Effect:
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Same capital supports more trades
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Higher volumes
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Faster price discovery
Unlike India — where broker margin funding is restricted — Pakistan’s structure means liquidity velocity increases materially.
This is not bullish hype. It is market plumbing.
Sectoral Implications (Why Some Sectors Survive Better)
Fertilizers
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Policy-protected demand
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Gas allocation certainty matters more than subsidies
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Cash flows remain relatively resilient
Energy & E&P
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FX-linked revenues
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Sovereign risk remains the key discount factor
Autos
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Rate cuts + remittance recovery revive financing
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Evidence: auto loans rebounded to PKR 318bn, +35.5% YoY
Brokers
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T+1 is a balance-sheet multiplier
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Well-capitalized players gain structural advantage
Observation: Sector performance on PSX increasingly reflects fiscal math, not GDP headlines.
Expenditure, Not Taxes: The Core Misdiagnosis
Public discourse often frames the issue as:
“Pakistan doesn’t tax enough.”
Markets frame it differently:
“Pakistan spends without discipline and borrows to sustain it.”
Debt servicing now crowds out:
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