Shareholders of National Bank of Pakistan are still waiting for a historic dividend payment. The bank announced a massive Rs35 per share final cash dividend. This equals a 350% payout. However, nearly two months have passed without disbursement.
The delay has raised concerns among investors. Many expected quick payment after strong financial results. However, the issue is not financial. Instead, it is linked to government procedures.
Record Profits but No Payout Yet
NBP delivered outstanding performance for the year ending December 31, 2025. The bank reported a profit after tax of Rs85.91 billion. This marked a more than threefold increase compared to the previous year.
Following this success, the bank announced its highest-ever dividend on February 24, 2026. Later, shareholders approved the payout during the 77th Annual General Meeting on March 31, 2026.
Investors who held shares by March 17 qualified for the dividend. Therefore, expectations for timely payment increased significantly.
Why the Dividend Is Delayed
Despite approvals, the dividend has not been released. The main reason lies in NBP’s ownership structure. The bank operates as a state-owned entity.
Because of this, dividend payments require government clearance. Approval must come from the federal cabinet or the Ministry of Finance. This adds an extra layer to the process.
As a result, even after board and shareholder approvals, funds cannot be distributed immediately. This rule slows down execution compared to private banks.
Cabinet Delay Slows Process
Another key factor is administrative delay. No federal cabinet meeting has taken place after April 8. Meanwhile, the Prime Minister remains occupied with international engagements.
Therefore, the approval process has stalled. Officials indicate that the delay is procedural, not financial. NBP has sufficient funds to pay the dividend.
Legal Framework Behind the Delay
The requirement for government approval comes from the Banks (Nationalization) Act 1974. This law governs profit distribution for nationalized banks.
According to this framework, dividend declaration is incomplete without state approval. Therefore, the timeline for payment has not officially started.
Under the Companies Act 2017, companies must pay dividends within 15 working days of declaration. However, in this case, the قانونی clock begins only after government clearance.
Impact on Investors and Market Sentiment
Although the delay is legally justified, it affects investor confidence. Shareholders expected quick returns after strong earnings. Instead, they face uncertainty.
This situation creates a gap between financial performance and payout execution. As a result, concerns about governance efficiency in state-owned entities are growing.
Moreover, such delays can impact sentiment at the Pakistan Stock Exchange. Investors value predictability and timely payments. When payouts are delayed, trust can weaken.
What Happens Next?
The dividend will likely be released once government approval is granted. Therefore, investors must wait for the next cabinet decision.
Until then, the delay highlights a key issue. Strong profits alone do not guarantee quick shareholder returns in state-owned companies.
This case shows how administrative processes can influence financial outcomes. It also underlines the need for faster decision-making in public sector institutions.
