National Bank of Pakistan (NBP) shareholders have approved a compensation package for President and Chief Executive Officer (CEO) Imran Sarwar, featuring a gross monthly salary of Rs9.5 million, a housing allowance of Rs1 million and a wide range of additional benefits, including vehicles, security personnel, domestic staff, medical coverage and life insurance.
According to a disclosure submitted to the Pakistan Stock Exchange (PSX) on Friday, the package was approved during an extraordinary general meeting held in Karachi on October 22, 2026, following a recommendation from the bank’s board of directors.
The approved terms apply from September 9, 2026, when Sarwar assumed office, and cover his three-year tenure from 2026 to 2029, subject to applicable tax deductions.
Rs114 Million Annual Salary, Excluding Benefits
Under the approved compensation structure, Sarwar will receive a gross monthly salary of Rs9.5 million, amounting to Rs114 million annually before taxes. An additional housing allowance of Rs1 million per month takes his combined fixed annual salary and housing entitlement to Rs126 million.
The package also includes an annual performance bonus linked to key performance indicators approved by shareholders. The board will evaluate his performance and determine the bonus each year.
However, the agenda item seeking approval of the CEO’s performance indicators for 2026 was withdrawn during the meeting.
The resolution states that the salary and benefits will remain fixed throughout the contract period.
Two Vehicles, Drivers and Residential Security
The compensation package provides Sarwar with two vehicles, including one valued at up to Rs3.5 million and another selected from the bank’s existing vehicle pool.
He will have the option to purchase the entitlement vehicle at the end of his contract for 10% of its original cost or its written-down value, whichever is higher.
NBP will cover fuel expenses for the bank-provided vehicle at actual cost. The bank will also provide two drivers or reimburse their salaries at Rs45,000 per driver per month.
For residential security, the bank will provide four security guards, with two guards assigned to each 12-hour shift.
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The package also covers the salaries of five domestic workers, subject to a combined monthly limit of Rs150,000.
Housing, Furnishing and Utility Expenses
In addition to the monthly housing allowance, Sarwar will receive a one-time home furnishing allowance equivalent to one month’s gross salary.
The bank will also provide a residential generator facility costing up to Rs1.5 million, with the amount to be amortised over the contract period.
Electricity, gas and water bills will be reimbursed at actual cost. The benefits further include two residential telephone connections and two mobile phones, along with their monthly bills.
The disclosure also confirms that Sarwar has opted not to use the house loan facility available under the compensation framework.
Medical Coverage, Insurance and Club Memberships
NBP will reimburse medical and dental expenses incurred by Sarwar and his dependent family members within Pakistan at actual cost.
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The bank has also approved life insurance coverage of Rs30 million for the duration of his contract. The annual insurance premium will be shared equally between Sarwar and the bank.
His retirement-related benefits include gratuity equivalent to one month’s last-drawn gross salary for every year of service. Any service period of six months or more will count as a completed year.
The bank will pay entry fees for memberships at two clubs of his choice and cover subscription and other charges for three clubs. Official travel expenses will also be reimbursed in accordance with NBP’s policy for senior executives.
Sarwar will be entitled to 30 days of annual leave and 18 days of casual or sick leave each year. Annual leave can be accumulated up to 90 days and encashed at his last-drawn gross salary.
Contract Termination and Resignation Conditions
The approved agreement includes provisions governing the early termination of Sarwar’s employment. If NBP terminates his contract before its expiry, he will receive payment for the remaining unexpired period in accordance with the approved contractual terms.
In case of resignation, he will be required to take three months of gardening leave as part of the notice period.
Shareholders Elect New Director
Separately, shareholders elected Muhammad Afzal as a director representing private shareholders for a three-year term beginning October 22, 2026. He replaces Farid Malik, whose tenure had ended.
Afzal secured 213,498,993 votes, representing 75.4517% of the 282,961,201 votes cast. His appointment remains subject to clearance from the State Bank of Pakistan.
Shareholders also confirmed the minutes of NBP’s 77th annual general meeting, held on March 30, 2026.
