NBP CEO Gets Rs9.5M Monthly Salary, Rs126M Annual Fixed Pay

Shareholders of the National Bank of Pakistan (NBP) have approved a compensation package for President and Chief Executive Officer Imran Sarwar, featuring a gross monthly salary of Rs9.5 million, a monthly housing allowance of Rs1 million and a range of additional benefits.

According to a disclosure submitted to the Pakistan Stock Exchange (PSX) on Friday, the package was endorsed at an extraordinary general meeting held in Karachi on October 22, 2026, following a recommendation by the bank's board of directors.

Sarwar's basic gross salary amounts to Rs114 million annually, excluding bonuses and allowances. With the additional housing allowance of Rs12 million per year, his fixed annual salary and housing entitlement totals Rs126 million, before applicable tax deductions.

The approved terms take effect from September 9, 2026, when Sarwar assumed office, and cover the 2026–2029 contractual period.

Under the agreement, Sarwar may also receive an annual performance bonus tied to key performance indicators approved by shareholders. His performance will be assessed by the board each year. However, the agenda item seeking approval of his performance indicators for 2026 was withdrawn during the meeting.

The benefits package covers household utility bills, including electricity, gas and water, at actual cost. It also includes two residential telephone connections and two mobile phones, with their monthly bills covered by the bank.

NBP will arrange four security guards for Sarwar's residence, with two guards assigned to each 12-hour shift. The bank will also reimburse the salaries of five domestic employees, subject to a combined monthly limit of Rs150,000.

Additionally, Sarwar has been granted a one-time home furnishing allowance equivalent to one month's gross salary.

The bank will provide two vehicles: one valued at up to Rs3.5 million and another selected from its existing vehicle fleet. At the end of his contract, Sarwar may purchase the designated entitlement vehicle for 10% of its original cost or its written-down value, whichever is higher.

Fuel costs for the bank-provided vehicle will be reimbursed at actual cost. NBP will also provide two drivers or cover their salaries at Rs45,000 per driver each month.

The disclosure confirms that Sarwar has chosen not to avail himself of the house loan facility available under the compensation arrangement.

Other provisions include a residential generator costing up to Rs1.5 million, with its cost amortised over the contract period, and reimbursement of official travel expenses under NBP's policy for senior executives.

Medical and dental expenses incurred by Sarwar and his dependent family members within Pakistan will be reimbursed at actual cost. The bank has also approved life insurance coverage worth Rs30 million for the contract period, with the annual premium divided equally between Sarwar and NBP.

His gratuity entitlement will equal one month's last-drawn gross salary for every year of service. Any service period of six months or more will count as a full year for this calculation.

The compensation package also covers entry fees for memberships at two clubs of Sarwar's choice, along with subscription and other charges for three clubs.

His annual leave entitlement stands at 30 days, while casual or sick leave is set at 18 days per year. Annual leave can accumulate to a maximum of 90 days and may be encashed at his last-drawn gross salary.

The approved resolution states that his salary and benefits will remain unchanged throughout the contract. If NBP terminates his employment before the agreement expires, compensation for the remaining contractual period will be payable in accordance with the approved terms.

In case of resignation, Sarwar will be required to serve a three-month gardening leave period as part of the notice requirements.

Separately, NBP shareholders elected Muhammad Afzal as a director representing private shareholders for a three-year term starting October 22, 2026. He replaces Farid Malik, whose tenure has ended.

Afzal received 213,498,993 votes, equivalent to 75.4517% of the 282,961,201 votes cast. His appointment remains subject to approval from the State Bank of Pakistan.

Shareholders also approved the minutes of the bank's 77th annual general meeting, which took place on March 30, 2026.