Think of It Like This (Simple Analogy)
Imagine a shopkeeper who gets his cash back:
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After 2 days → T+2
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After 1 day → T+1
With faster cash recovery:
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He restocks sooner
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He sells more with the same money
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Business velocity increases
PSX brokers are that shopkeeper.
What This Means for the Market
1️⃣ Higher Trading Volumes
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Faster recycling of broker funds
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More trades supported with the same balance sheet
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Liquidity deepens organically
2️⃣ Faster Price Discovery
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Prices adjust quicker to news
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Less “stuck” capital
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More active two-way trading
3️⃣ More Active Retail Participation
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Easier margin availability
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Better execution
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Higher turnover in liquid stocks
Will This Create a One-Way Rally?
No.
This is important.
T+1 is not a bullish guarantee.
What it does guarantee:
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Higher activity
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Higher velocity
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More responsive prices
Markets can go up or down — but they will move faster and cleaner.
Why Pakistan Is Different From India
India already runs T+1.
But there’s a critical difference:
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Indian regulators do not allow brokers to fund margins
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Broker balance sheets there do not amplify liquidity
In Pakistan:
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Broker-funded trading is allowed
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Capital recycling has real leverage effects
That’s why T+1 matters far more in PSX than it did in India.
Who Benefits the Most?
✔ Well-Capitalised Brokers
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Strong balance sheets
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Efficient risk systems
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Ability to scale volumes safely
✔ Liquid, High-Turnover Stocks
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Banks
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Energy
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Index-heavy names
✔ Active Traders (With Discipline)
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Better execution
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Faster settlement
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Lower friction
