The Federal Constitutional Court’s decision could have financial implications for NBP, although the final impact will depend on the detailed judgment.
KARACHI, September 18, 2026: The Federal Constitutional Court (FCC) has dismissed an appeal filed by the National Bank of Pakistan (NBP) in a long-running pension case, entitling the bank’s pensioners to receive government-announced increases in their pensions.
NBP disclosed the development to the Pakistan Stock Exchange (PSX) on Thursday, stating that the FCC announced its reserved judgment on September 16, 2026, in Civil Appeal No. 1688/2021, National Bank of Pakistan & others vs Khawaja Abdul Hameed Nasir & others.
The bank said the full text of the judgment is still awaited.
The ruling could have financial implications for NBP, although the precise impact cannot yet be determined. The detailed judgment is expected to clarify the scope of pensioners covered, the applicable period and whether any arrears or other payments will be payable.
Potential financial impact on NBP
According to brokerage analysis cited in market reports, NBP has already recognised significant pension-related costs, with pension provisions increasing substantially.
Arif Habib Limited estimated that additional provisioning under different scenarios could range from Rs5 billion to Rs20 billion. Its analysis suggested that every additional Rs5 billion provision could have an annualised impact of around 3.4 per cent on earnings per share (EPS).
The brokerage also estimated that every additional Rs5 billion charge could reduce NBP’s forward Common Equity Tier 1 (CET-1) ratio for calendar year 2026 by approximately 10 basis points.
However, these estimates remain subject to the final court judgment and its implementation.
NBP capital position
NBP’s existing capital position provides context for assessing any potential financial impact from the ruling.
According to the cited analysis, the bank reported a Total Capital Adequacy Ratio (CAR) of 22.3 per cent and a CET-1 ratio of 16.9 per cent as of June 2026.
The final cost to NBP will depend on how the court’s decision is implemented, including the number of pensioners covered and the period for which government-announced pension increases are applicable.
The case therefore remains subject to further clarity until the complete FCC judgment is released.