Karachi, December 13, 2025 – The State Bank of Pakistan (SBP) has introduced revised maximum remuneration limits for directors attending board and committee meetings of banks and Development Finance Institutions (DFIs).
The updated framework, issued through a circular on Friday, marks a significant amendment to the Corporate Governance Regulatory Framework (CGRF) aimed at enhancing governance, transparency, and accountability across the banking sector.
According to the circular, the SBP referenced its earlier BPRD Circular No. 5 of 2021, noting that the latest revisions specifically apply to Regulation G-14 (2)(v) of the CGRF. This regulation outlines parameters for categorizing banks and DFIs and prescribes the upper limits of remuneration that directors can receive per meeting.
Under the revised guidelines, institutions have been divided into two categories. Category One includes banks and DFIs with assets exceeding Rs. 1 trillion or after-tax profits above Rs. 5 billion, based on their latest audited annual financial statements. Directors serving in these institutions are now allowed a maximum remuneration of up to Rs. 1,200,000 per board or committee meeting.
All remaining banks and DFIs that do not meet these financial criteria fall into Category Two, where directors can receive a maximum of up to Rs. 750,000 per meeting.
The SBP stated that these revisions aim to ensure fair compensation aligned with institutional size while maintaining prudent governance standards. The updated remuneration caps are expected to streamline board practices and strengthen oversight mechanisms across the financial industry, supporting improved institutional performance and regulatory compliance.