Pakistan government committee approves amendments to NBP law — The Express Tribune
In Islamabad, the government’s Legislative Affairs Committee approved the draft 2026 Bill amending legislation concerning the National Bank of Pakistan (NBP). The reform is intended to improve corporate governance and the operation of the state-owned bank in line with a condition of the International Monetary Fund programme, The Express Tribune reports. To meet this condition, the bill must still be approved by Pakistan’s parliament.
Appointment of the bank’s president
Under the draft, the federal government will appoint the NBP president after consultations with the State Bank of Pakistan. The president will be selected from three candidates recommended by the NBP central board by a three-quarter majority vote.
Such a majority must include the vote of the Finance Division director. The publication notes that this requirement limits the bank board’s independence in drawing up the list of candidates. The president is proposed to be appointed for three years under a performance-linked contract; the federal government will be able to extend the contract provided that performance is substantially satisfactory.
New governance rules
NBP, which the federal government has designated a strategic state-owned enterprise, is planned to be regulated by the NBP Act, the State-Owned Enterprises Act and the Pakistan Sovereign Wealth Fund Act. In the event of conflicts between the State-Owned Enterprises Act and the NBP Act, the former will take precedence.
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The majority of members of the central board must be independent directors from the private sector. The federal government will appoint the board’s chair from among the independent directors, as well as four independent directors, after consultations with the State Bank of Pakistan. The total number of central board members may range from six to nine, while independent directors must retain a majority.
Restrictions for politicians and audit
Members of the Senate, the National Assembly, provincial assemblies and elected members of local councils will not be eligible to serve on the board. The bill also provides for the establishment of an audit committee, the majority of whose members will be independent directors. The chair of the central board and the bank president will not be members of this committee.
Once the law enters into force, local boards, regional committees and other existing NBP governing bodies will be dissolved without compensation to their members.
