SBP Approves 50% Increase in Board Meeting Fees for Bank Directors in 2026
The State Bank of Pakistan (SBP) has officially approved a 50% rise in fees for directors attending bank board and committee meetings. This decision reflects the growing responsibilities of bank directors and aims to incentivize active participation in governance and strategic decision-making.
Details of the Fee Increase
SBP issued a circular detailing the updated fee structure for directors. The revised fees are applicable to all SBP-regulated banks:
| Meeting Type | Previous Fee | New Fee | Increase |
|---|---|---|---|
| Board Meeting | PKR 20,000 | PKR 30,000 | 50% |
| Committee Meeting | PKR 15,000 | PKR 22,500 | 50% |
The move ensures that directors’ compensation aligns with their workload and responsibilities, encouraging more experienced professionals to participate in board activities.
Govt Mandates Energy-Efficient Products to Reduce Power Costs in Public Sector
The federal government has made energy-efficient products mandatory across public…
Electricity Prices Likely to Rise Again Across Pakistan
Electricity prices are likely to rise again across Pakistan as…
Wafi Energy Pakistan, Hyundai Nishat Motors Partner for Shell Lubricants Supply
Wafi Energy Pakistan Limited and Hyundai Nishat Motors have entered…
Impact on Banks and Directors
- Stronger Governance: Increased fees are expected to attract qualified directors.
- Budget Adjustments: Banks must plan for higher operational costs related to board meetings.
- Enhanced Decision-Making: Directors are likely to be more engaged in critical banking decisions.
FAQs
Q1: Who benefits from this fee hike?
Directors of all banks regulated by SBP attending board or committee meetings.
Q2: When will the new fees be effective?
The increase is effective immediately for 2026.
Q3: Are these fees taxable?
Yes, the fees are subject to applicable taxation under Pakistani law.
Conclusion
The 50% rise in board meeting fees by SBP strengthens corporate governance in Pakistan’s banking sector. By offering competitive compensation, it encourages active participation, attracts experienced directors, and ensures more effective oversight of bank operations.
