Islamabad, January 1, 2026 – The Bank of Punjab (BOP), in collaboration with the British Asian Trust (BAT) acting as Transaction Advisors and Program Managers (TAPM), has officially launched the Pakistan Skills Impact Bond (PSIB)—a AAA-rated, Government of Pakistan-backed Term Finance Certificate (TFC) valued at Rs 1,000 million.
Developed under the guidance of Finance Minister Muhammad Aurangzeb and Minister of Education Dr. Khalid Maqbool Siddiqui, and in coordination with the National Vocational and Technical Training Commission (NAVTTC), the PSIB represents a transformative step in Pakistan’s social impact financing landscape.
The initiative, led by Zafar Masud, President and CEO of BOP, is structured as a results-based “pay-for-success” model. The bond channels upfront investor funding into high-impact skills development programs, with payments tied to measurable outcomes, including successful job placements and long-term employment for Pakistani youth.
Through this innovative model, the PSIB mobilizes Rs 1 billion in funding to bridge the national skills gap, increase economic participation, and enhance women’s workforce inclusion.
The program has received international support, including contributions from the Foreign, Commonwealth & Development Office (FCDO), delivered via BAT through FCDO’s Private Sector and Capital Markets Department.
Speaking at the launch in Islamabad, Zafar Masud emphasized the strategic role of BOP: “The Bank of Punjab has acted as risk investor and underwriter, providing initial capital and assuming performance risk to enable this blended finance mechanism. This is not just a financial initiative but a commitment to Pakistan’s economic stability and human capital development.”
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, highlighted the bond’s transformational impact, calling the launch “an important moment focused on education and training.” He stressed that Pakistan’s demographic dividend can only be realized through large-scale upskilling and reskilling of youth, making the PSIB a key component of the nation’s economic and human capital strategy.
The PSIB is expected to set a precedent for private sector-led social impact initiatives, demonstrating how innovative financing can drive employment, skills development, and economic growth in Pakistan.