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.

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.