PSX boss may confront hatchet for neglecting to determine 'irreconcilable situation' concerns
PSX Boss May Confront Hatchet for T+1 Chaos: The 2026 Crisis That Has Pakistan's Stock Exchange Fighting for Its Life
Let's be honest: if you're the CEO of the Pakistan Stock Exchange in 2026, you're probably updating your résumé more often than you're checking the KSE-100. Between a botched settlement system rollout that wiped out 20,000 points in weeks, an SECP that can't decide whether it's investigating you or not, and a Middle East war that sent the market into a 9% tailspin in five minutes flat, the top job at the PSX has become less a corner office and more a hot seat positioned directly over a volcano. And if you think that sounds dramatic, just wait until you hear about the brokers who allegedly crashed the market on purpose because they missed their T+2 interest payments. Welcome to the Pakistan Stock Exchange in 2026, where the only thing more volatile than the KSE-100 is the regulatory environment, and the CEO's chair has a built‑in ejector seat that someone keeps threatening to trigger. Grab your chai and settle in, because this is going to be a bumpy ride through the looking glass of Pakistani capital markets.
Back in May 2019, when this article was first published, the PSX was a very different place. The KSE-100 was hovering around 35,000 points. The biggest concerns were the usual suspects: a sluggish economy, political uncertainty, and the eternal dance with the IMF. The idea that the exchange would one day hit 189,000 points—and then crash by nearly 40,000 points in a matter of weeks—would have seemed like the fever dream of an over‑caffeinated trader. But here we are. The PSX has been through a pandemic, a commodity supercycle, a full‑blown Middle East war, and the kind of regulatory whiplash that would make even the most hardened Karachi broker reach for a cigarette. The CEO, Farrukh H. Khan, is now in his second term—a term that, under new SECP rules, might be his last—and he's facing questions about everything from the T+1 settlement debacle to the exchange's handling of the Iran‑triggered market halt. The board has a new chairman, Ruhail Mohammad, who stepped in after the sudden death of Dr. Shamshad Akhtar. And the market itself is a nervous wreck, lurching from 4% weekly gains to 3,000‑point daily drops depending on whether the latest US‑Iran ceasefire is holding or collapsing. This is the story of how Pakistan's premier stock exchange went from a quiet backwater to the epicentre of a financial earthquake—and whether the boss can survive the aftershocks. Spoiler alert: it's not looking great.
"Stocks witnessed selling amid concerns over reignited US-Iran tensions. Surging government bond yields, falling global equities, and the surge in global crude oil prices played a catalyst role in bearish activity at PSX."
The T+1 Debacle: How a Settlement "Upgrade" Wiped Out 20,000 Points
If there's a single decision that has come to define the PSX's 2026 crisis—and the one most likely to cost someone their job—it's the transition to the T+1 settlement cycle. On paper, it was a no‑brainer. Moving from T+2 (settling trades two days after execution) to T+1 (settling the next day) would align Pakistan with leading markets like the United States, Canada, and China. It would reduce counterparty risk, improve liquidity, and signal to the world that Pakistan's capital markets were modernising. The SECP, under then‑Chairman Akif Saeed, pushed the reform through, with the PSX, NCCPL, and CDC all working in close collaboration. The transition date was set: February 9, 2026. What could possibly go wrong? As it turns out, everything.
Within days of the T+1 rollout, the KSE-100 began a precipitous decline. By February 26, the index had shed over 20,000 points. The bloodbath was so severe that accusations began flying: brokers, who had previously earned substantial interest income from the float generated under the old T+2 system, were now seeing those profits evaporate. Some market participants alleged that brokers had colluded to "artificially crash" the market in retaliation, deliberately driving down prices to force a reversal of the policy. The SECP announced it would launch an investigation into the "sharp downturn," and the Pakistan Observer reported that the probe would examine whether brokers had "orchestrated" the selloff. The next day, the SECP issued a hasty clarification: there was no investigation. "The SECP has firmly rejected reports claiming that it was investigating allegations of a deliberate drop in the Pakistan Stock Exchange," the regulator said in a statement. "Stock market fluctuations are influenced by various economic and financial factors, and it is misleading to link these movements to any single event or to speculate on possible conspiracies." The whiplash was complete. First there was a probe. Then there wasn't. First the crash was a conspiracy. Then it was just "various economic and financial factors." The only thing that was clear was that nobody wanted to take responsibility for the 20,000‑point hole in the KSE-100.
For PSX CEO Farrukh H. Khan, the T+1 debacle has been a public relations nightmare. As the face of the exchange, he's been forced to defend a policy that, while technically sound, was implemented with all the grace of a bull in a china shop. The brokers, who are the exchange's primary customers, are furious. The SECP, which is supposed to be the regulator, can't seem to decide whether it's investigating the crash or pretending it never happened. And the investors, who watched their portfolios evaporate, are demanding answers. "The challenge we are facing is structural and governance‑related," one analyst told The News. "Until we initiate that change, the PSX will remain a market capable of impressive rallies, yet constrained by recurring fragility." That's a polite way of saying that the exchange's leadership has lost control of the narrative—and perhaps of the market itself. Whether Khan can survive the fallout is an open question. The SECP's 2023 tenure restrictions, which limit CEOs of Capital Market Infrastructure Institutions to three terms, mean that Khan's current term—his second—will be his last unless he can demonstrate "exceptional performance circumstances" and survive a competitive selection process. Given the events of 2026, "exceptional" might not be the first word that comes to mind.
The Iran Shock: When the Market Halted After Five Minutes of Trading
If the T+1 crisis was a slow‑motion train wreck, the Iran shock was a head‑on collision at full speed. On March 2, 2026, the KSE-100 opened to chaos. Within the first five minutes of trading, the index plunged 15,071 points—nearly 9%—to 152,991.15. The drop triggered an automatic market‑wide halt under PSX rules, suspending all equity trading. The culprit was the escalating conflict between the United States and Iran, which had seen military strikes kill Supreme Leader Ayatollah Ali Khamenei and effectively shut the Strait of Hormuz. Oil prices spiked—Brent crude jumped as much as 14% before settling 4.5% higher at $76.07 a barrel. Gold surged 1% to $5,327 an ounce as investors fled to safety. And in Karachi, panic reigned. "Elevated oil prices are highly detrimental to Pakistan's external account, and persistently high commodity prices are likely to trigger a new wave of inflation," warned Waqas Ghani, head of research at JS Global. Mohammed Sohail, CEO of Topline Securities, said "a leveraged position coupled with Iran and Afghanistan positions added fuel to the fire." The market was in freefall, and the PSX's circuit breakers were the only thing standing between the KSE-100 and the abyss.
The halt lasted just over an hour, with trading resuming at 10:27 a.m. But the damage was done. The rout extended a painful run that had already seen the KSE-100 lose 5,107 points the previous week. Heavyweights like Habib Bank, MCB Bank, Mari Petroleum, Oil & Gas Development, and Hub Power all traded deep in the red. The Ministry of Finance, in a cruel twist of timing, kicked off a fresh round of talks with an International Monetary Fund mission on the same day the market cratered. For the PSX leadership, the Iran shock was a stark reminder of the exchange's vulnerability to external forces it cannot control. But it also raised uncomfortable questions about the exchange's preparedness. Could the circuit breakers have been triggered earlier? Was the communication with investors adequate? And why did it take a 9% crash in five minutes to halt trading, when the warning signs had been flashing for days? These are the kinds of questions that boards ask when they're looking for someone to blame. And in the brutal world of Pakistani capital markets, blame has a way of rolling downhill—straight to the CEO's office.
The Regulatory Quagmire: SECP vs. PSX vs. Everyone
If there's one thing that unites all participants in Pakistan's capital markets, it's a deep and abiding frustration with the regulatory environment. The SECP, the apex regulator, has been on a reformist tear in recent years—and not everyone is happy about it. The 2023 tenure restrictions, which limit CEOs of the PSX and other CMIIs to three terms, were a direct shot at the entrenched leadership that had dominated these institutions for years. The SECP's stated goal was to "dismantle dominance" and "usher in new leadership" to facilitate reform. But the practical effect has been to create a permanent sense of insecurity at the top of the PSX. Farrukh H. Khan, who completed his first three‑year term in February 2023 and was renewed for a second term, is now acutely aware that his time is limited. The SECP's rules make it clear that a third term will only be granted under "exceptional performance circumstances" and after a competitive selection process. In other words, Khan has to prove he's indispensable while simultaneously preparing for his own obsolescence. It's a thankless task, and it's one that would test even the most seasoned executive.
Meanwhile, the SECP's broader enforcement actions are keeping the PSX's compliance department busy. In April 2026 alone, the exchange ordered compulsory buy‑backs for three companies—Haseeb Waqas Sugar Mills, Dadabhoy Construction Technology, and Imperial Limited—after they failed to clear outstanding dues. The companies were given 90 days to offer minority shareholders an exit, with the threat of delisting and SECP winding‑up proceedings if they failed to comply. The PSX also maintained a 60‑day trading suspension for eight companies due to "continued regulatory and financial breaches." And the SECP cracked down on 41 state‑owned enterprises for failing to file audited accounts and annual returns. These actions, while necessary for market integrity, create a constant drumbeat of negative headlines. Every delisting, every suspension, every buy‑back order is a reminder that Pakistan's capital markets are still struggling with basic governance and transparency. And every reminder makes it harder for the PSX leadership to project the image of a modern, efficient exchange that investors can trust.
Then there's the matter of the SECP's own credibility. The regulator's flip‑flop on the T+1 investigation—first announcing a probe, then denying it—has damaged its reputation and left the PSX in an awkward position. If the SECP can't decide whether it's investigating the market's crash, what message does that send to investors? And if the regulator is itself a source of uncertainty, how can the exchange provide the stability that the market needs? These are not easy questions, and they don't have easy answers. But they are the questions that define the PSX's operating environment in 2026. As one market participant put it, "Generally, the Pakistan stock market is overly regulated, and the problem lies in the enforcement and meaningful implementation of these regulations." That's a polite way of saying that the rules are there, but nobody follows them—and the people who are supposed to enforce them can't seem to get their act together. For the PSX boss, navigating this regulatory quagmire is a full‑time job in itself. And it's one that offers few rewards and many pitfalls.
The New Chairman: Ruhail Mohammad Steps Into the Hot Seat
Amid all the chaos, the PSX's board has undergone a significant change. In January 2026, Ruhail Mohammad was elected chairman of the PSX Board of Directors, following the sudden death of former chairperson Dr. Shamshad Akhtar. Mohammad, a seasoned executive with more than 35 years of experience in general management, business development, and strategy, is currently the CEO of Lucky Electric Power Company Limited. He previously served as CEO of Hub Power Holdings and led Engro Fertilisers from 2012 to 2018. His board memberships have included Engro Corp, K‑Electric, and NBP Funds, and he has chaired the Pakistan Mercantile Exchange. In short, Mohammad is a heavyweight—a known quantity in Pakistan's corporate world, with deep ties to the energy and industrial sectors. His appointment was seen as a stabilising force, a steady hand to guide the PSX through turbulent times.
But Mohammad inherits a board and an exchange that are under immense pressure. The T+1 crisis, the Iran shock, the regulatory scrutiny—these are not problems that can be solved with a few well‑chosen words at a board meeting. They require a fundamental reassessment of the PSX's strategy, its technology, and its relationship with brokers and regulators. Mohammad's background in power and industry gives him credibility with the business community, but it doesn't necessarily prepare him for the unique challenges of running a stock exchange in a country where geopolitical crises and regulatory overreach are constant companions. The question is whether he can provide the leadership that the PSX needs—and whether he can do it while supporting a CEO whose position is increasingly precarious. The relationship between a chairman and a CEO is always delicate, but when the CEO is under fire and the board is navigating a crisis, it can become outright combustible. How Mohammad and Khan navigate that relationship will be one of the defining dynamics of the PSX in 2026.
The Market in 2026: A Nervous Wreck With Occasional Rallies
Let's talk about the numbers, because they tell a story that's hard to sugarcoat. As of April 23, 2026, the KSE-100 is trading around 172,000 points. That's up from the mid‑160,000s in early March, but still well below the all‑time high of 189,166.83 reached on January 23. The market has been on a rollercoaster: a 4% weekly gain (adding 6,748 points) in mid‑April, followed by a 3,145‑point intraday drop on April 20, then a 959‑point recovery on April 21, only to shed another 500 points on April 22. The volatility is breathtaking, and it's driven almost entirely by external factors: US‑Iran tensions, oil prices, global equities, and the ever‑present IMF negotiations. "The market had posted a notable rebound in the previous week as geopolitical tensions in the Middle East eased and investors anticipated a softer monetary policy stance," one report noted. "Lower oil prices had helped temper inflationary pressures, supporting that expectation." But the relief was short‑lived. As soon as Iran signalled it had no plans for a second round of talks with the US, the market tanked again.
This is the new normal for the PSX: a market that is acutely sensitive to developments 2,000 kilometres away, over which it has absolutely no control. The Strait of Hormuz—a chokepoint for roughly one‑fifth of global seaborne oil—is effectively a lever that can send the KSE-100 into a tailspin with a single Iranian press release. And the exchange's leadership, for all its efforts, is largely powerless to do anything about it. The best they can do is manage the fallout, communicate clearly with investors, and hope that the next ceasefire holds. It's a reactive, defensive posture—and it's not one that inspires confidence. As one analyst put it, "The PSX will remain a market capable of impressive rallies, yet constrained by recurring fragility." That's a kind way of saying that the exchange is a house built on sand, and the tide keeps coming in. Whether the PSX can build a more solid foundation—one that can withstand the geopolitical storms that are certain to keep coming—is the multi‑trillion‑rupee question. And the answer will determine not just the fate of the CEO, but the future of Pakistan's capital markets.
The Road Ahead: Can the PSX Boss Survive?
So where does all this leave Farrukh H. Khan and the PSX leadership? The short answer is: in a very precarious position. The T+1 rollout was a disaster, and someone will likely be held accountable. The Iran shock exposed the exchange's vulnerability and raised questions about its preparedness. The SECP's tenure restrictions mean that Khan's time is already running out, regardless of how he performs. And the new chairman, Ruhail Mohammad, may decide that a fresh start requires fresh leadership. The hatchet, in other words, is hovering. Whether it falls—and when—will depend on a combination of factors: the market's performance in the coming months, the outcome of any internal or regulatory reviews of the T+1 debacle, and the political dynamics within the board and the SECP. If the KSE-100 can stabilise and begin a sustained recovery, Khan may be able to argue that the worst is behind him. If the volatility continues and the market languishes below its January highs, the pressure to make a change will only intensify.
There is also the question of who would replace Khan. The SECP's reformist zeal has made it clear that it wants new blood in the leadership of Pakistan's capital market institutions. A competitive selection process for the PSX CEO role would likely attract a range of candidates—some from within Pakistan's financial sector, some perhaps from abroad. But the job is not an easy sell. Who wants to run a stock exchange that is at the mercy of Middle East geopolitics, hobbled by a fractious broker community, and overseen by a regulator that can't seem to make up its mind? The PSX needs a leader who can navigate the political and regulatory minefield while also modernising the exchange's technology and operations. It's a tall order, and it's not clear that there's a long line of qualified candidates waiting to take it on.
When this article was first published in 2019, the PSX was a quiet backwater, its biggest problems the usual suspects of a sluggish economy and political uncertainty. Seven years later, it's at the centre of a financial maelstrom, buffeted by forces it cannot control and struggling to maintain the trust of the investors it serves. The CEO's chair is a hot seat, and the hatchet is in the hands of a board and a regulator that are both under immense pressure. Whether Farrukh H. Khan survives the year is an open question. What's certain is that the PSX's leadership—whoever occupies the corner office—will have to navigate one of the most challenging periods in the exchange's history. And if they can't, the hatchet will fall. It's just a matter of when.
Key Takeaways: The PSX Crisis of 2026
- The T+1 settlement transition, implemented on February 9, 2026, triggered a 20,000‑point crash in the KSE-100 within weeks: Brokers allegedly colluded to drive down the market in retaliation for lost interest income, though the SECP flip‑flopped on whether it was investigating.
- The Iran conflict sent the KSE-100 plunging 9% in the first five minutes of trading on March 2, 2026, triggering a market‑wide halt: The crash wiped out 15,071 points and exposed the PSX's extreme vulnerability to Middle East geopolitics.
- SECP's 2023 tenure restrictions limit PSX CEOs to three terms, with a third term requiring "exceptional performance" and a competitive selection process: Farrukh H. Khan is in his second term, and his future is uncertain.
- Ruhail Mohammad was elected PSX chairman in January 2026, following the death of Dr. Shamshad Akhtar: Mohammad brings 35+ years of experience but inherits a board and exchange in crisis.
- The KSE-100 remains highly volatile, lurching between weekly gains and daily drops based on US‑Iran ceasefire developments: The index is still about 15,000 points below its all‑time high of 189,166 reached in January.
- The SECP has taken aggressive enforcement actions, including compulsory buy‑backs for three companies and a 60‑day trading suspension for eight others: These actions, while necessary, create a constant drumbeat of negative headlines.
- Market participants complain that the PSX is "overly regulated" but that enforcement is weak and implementation is inconsistent: The regulatory environment itself is a source of uncertainty.
- The PSX CEO faces pressure from all sides—brokers, regulators, the board, and external geopolitical forces—and his survival is far from guaranteed: The hatchet is hovering, and the next few months will be decisive.
Sources & Further Reading
- TDMi News: "PSX falls as US-Iran tensions, oil surge hit sentiment" (April 21, 2026)
- Pakistan Observer: "SECP to probe 'artificial crash' of 20,000 points at PSX by brokers" (February 26, 2026)
- Pakistan Observer: "SECP issues official response after reports of probe into PSX's deliberate decline" (February 27, 2026)
- Independent Pakistan: "Pakistan stocks crash 9 percent in five minutes as Iran conflict triggers PSX halt" (March 2, 2026)
- The News: "Curbing extended tenure: SECP imposes term restrictions on CMIIs CEOs, directors" (August 12, 2023)
- The News: "PSX Board elects Ruhail Mohammad as chairman" (January 6, 2026)
- Pakistan Today: "PSX drops more than 3,000 points in intraday trade amid uncertainty" (April 20, 2026)
- Daily Times: "PSX drops over 3,000 points amid regional uncertainty" (April 20, 2026)
- Profit by Pakistan Today: "PSX orders buy-back for Haseeb Waqas Sugar Mills, flags DCTL, Imperial Limited" (April 22, 2026)
- Dawn: "PSX plunges over 1,700 points amid Middle East tensions" (April 20, 2026)
- The Express Tribune: "KSE-100 sheds over 500 points at midday amid geopolitical jitters" (April 22, 2026)
- The News: "Pakistan's market mirage" (March 30, 2026)
Note: This article draws on reporting from TDMi News, Pakistan Observer, Independent Pakistan, The News, Pakistan Today, Daily Times, Profit by Pakistan Today, Dawn, and The Express Tribune. All data and quotations are attributed to their original publications. For more economic analysis and news, visit Top Economic News and Trendao.
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