The National Bank of Pakistan (NBP), once a hallmark of public service, now presents a troubling picture of decline — most notably in how it treats its retired employees.
These pensioners, who dedicated their lives to the bank’s success, find themselves neglected and mistreated at a time when they need institutional support the most.
Under the guise of provisioning for pension liabilities, the bank has quietly accumulated over Rs.
235 billion in unappropriated profits.
This figure surpasses NBP’s total paid-up capital and reserves, yet is largely untouched and continues to earn substantial mark-up year after year.
The supposed rationale has been to safeguard against pension-related expenses, but financial disclosures tell a different story.
In the 2024 Annual Report, the Chairman of the Board acknowledged — and essentially admitted — that only Rs.
68 billion was spent on pensions in the fiscal year.
More significantly, he noted that this sum was adjusted easily within the year’s earnings.
This starkly contrasts the narrative that pension obligations pose a burden on the bank’s financial health.
The truth is that these obligations are minor in comparison to the windfall generated from the retained profits.
This contradiction points to a larger issue: the systematic exploitation of pensioners’ rights to prop up the bank’s financial image.
By withholding payments due to retirees and investing the reserve funds elsewhere, NBP continues to inflate its Tier-I Capital and present an artificially strong financial front, all the while senior executives reward themselves with generous bonuses, perks, and incentives.
Even more disturbing is the bank’s defiance of judicial directives.
From the High Court to the Supreme Court — including review and execution stages — the judiciary has unanimously ruled in favour of restoring pensions with associated benefits.
The rulings clearly mandate restoration of 70% pensions, a 2% additional allowance and annual budgetary increases.
Yet, thousands of pensioners remain deprived of these rightful benefits.
Despite these judgments — issued by no fewer than 12 honourable judges — the bank has refused full compliance.
In an appalling move, NBP even issued recovery notices to some retired employees, portraying a disregard for legal norms and ethical standards.
While a few have received partial payments after court intervention, the vast majority continue to wait.
Another critical issue concerns NBP’s massive accumulation of Unappropriated Profits under the false pretext of meeting pensioners’ liabilities.
Despite amassing colossal reserves, the Chairman of the Board, in the NBP Annual Report 2024, admitted that only Rs.
68 billion — termed “unprecedented” — was spent on pension obligations, smoothly adjusted within annual earnings.
This clearly shows that pension liabilities are negligible compared to the enormous Unappropriated Profits and the consistent mark-up earned on them.
Meanwhile, these reserves remain untouched, inflating Tier-I Capital and artificially strengthening the bank’s financial image.
This matter goes beyond numbers; it is about fundamental justice and responsible governance.
As a public institution, with the Government of Pakistan and the State Bank as majority stakeholders, NBP must be held accountable.
Yet it acts with the impunity of a private cartel, protecting its leadership while ignoring lawful obligations toward its retired employees.
Urgent action from Parliament, the Ministry of Finance, the State Bank, and regulatory bodies is essential.
NBP pensioners are not seeking favours; they are demanding justice, respect, and enforcement of rights already affirmed by the country’s highest courts.
Further delay is not merely a denial of dues — it is a denial of humanity and national values.
—The writer is former Regional Executive Inclusive Development at NBP, Mirpur AK. (aahmadofpaswal@yahoo.com)
