Why hasn’t NBP paid its 350% dividend yet?

April 21, 2026 (MLN): Shareholders of the National Bank of Pakistan (NBP) continue to await their record dividend payout, despite the bank announcing a historic Rs35 per share (350%) final cash dividend nearly two months ago.

The delay, however, is not rooted in financial weakness; it lies in the mechanics of state ownership.

NBP reported a remarkable profit after tax of Rs85.91 billion for the year ended December 31, 2025, up more than threefold year-on-year, and simultaneously recommended its highest-ever payout on February 24, 2026.

The dividend was later approved by shareholders at the 77th Annual General Meeting on March 31, 2026, for those on record as of March 17, 2026.

Yet despite both the board's recommendation and shareholder approval, the payout remains pending. The reason is structural.

NBP is a state-owned bank, and its dividend distribution requires federal government approval, not just board or shareholder consent.

This approval typically comes through the Cabinet or the Ministry of Finance, adding layer beyond standard corporate procedure.

Critically, no federal cabinet meeting has been held after April 8, while the Prime Minister remains engaged in diplomatic commitments.

As a result, the process appears administratively delayed rather than financially constrained.

So this does not seem to be about a liquidity issue on the NBP side; it is about state machinery moving slower than market expectations.

The requirement itself stems from the Banks (Nationalization) Act 1974, under which profit distribution by nationalized banks must be cleared by the federal government. This condition was explicitly mentioned in both the February 24 notice and the AGM resolution.

From a legal standpoint, the delay does not yet breach the Companies Act 2017, which mandates dividend payments within 15 working days of declaration. In NBP’s case, the “declaration” is not considered complete until government approval is granted, meaning the statutory clock has not yet begun.

However, from a market perspective, the situation is more sensitive.

Investors were locked in by mid-March, the earnings are already realized, and shareholder approval has been secured.

The continued wait introduces a disconnect between corporate performance and payout execution, raising concerns around governance efficiency in state-owned entities.

For the Pakistan Stock Exchange, where predictability and timely returns are key, such episodes can weigh on investor sentiment.

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