The federal cabinet has approved the appointment of a new President and Chief Executive Officer (CEO) of National Bank of Pakistan (NBP), bringing an end to a leadership vacancy that has continued for around six weeks. The government has not yet publicly disclosed the name of the selected individual, but a memorandum issued by the Cabinet Secretariat’s Cabinet Division on September 2 confirms that the federal cabinet has disposed of its decision regarding the appointment. The memorandum was addressed to the Secretary of the Finance Division and confirms that the appointment was considered and approved under the relevant provisions of the Rules of Business, 1973.
While the Cabinet Division document does not identify the appointee, it confirms that the government has moved to the implementation stage. The name of the selected candidate is contained in an enclosure that has not been made public. The Finance Division has been directed to initiate implementation of the cabinet’s decision immediately under Rule 24 and coordinate with other divisions where required. The division has also been instructed to report back to the Cabinet Division within seven days of receiving the memorandum. The procedural development effectively closes the prolonged uncertainty surrounding the permanent leadership of Pakistan’s largest state owned bank.
The leadership vacancy emerged after Rehmat Ali Hasnie, who had served as NBP President since August 2023, completed his tenure following a final two week extension that expired on August 21, 2026. Following his departure, NBP Chief Financial Officer Abdul Wahid Sethi was assigned acting charge of the bank. His interim appointment was capped by the Finance Division at three months or until a permanent President and CEO was appointed, whichever came earlier. Sethi therefore continued to oversee the bank during the period in which the government completed its process for selecting a regular head.
The search for a permanent President and CEO had been underway since June, when the Finance Division invited applications for a qualified corporate leader to head NBP under Section 11(3)(a) of the Banks (Nationalization) Act, 1974. The government subsequently shortlisted nine candidates for interviews conducted in mid August by a panel chaired by the Finance Minister. Among the candidates were Zafar Masud, President and CEO of Bank of Punjab, Imran Sarwar, Group Executive Risk and Chief Risk Officer at United Bank Limited, and Hassan Raza, Managing Director and CEO of Bank of Khyber. These three names had been repeatedly identified as leading candidates during the selection process ahead of the cabinet’s decision.
The appointment carries importance for Pakistan’s banking sector because NBP is the country’s largest state owned lender and has a significant role within the public sector financial system. The bank is also listed on the Pakistan Stock Exchange, making its governance and senior management decisions relevant to investors and institutional market participants. The appointment of a permanent President and CEO is therefore expected to provide greater clarity over the bank’s leadership direction after an extended period of interim management.
The new chief will inherit several ongoing priorities associated with the bank’s operations and transformation agenda. These include continuity in credit decisions, information technology modernization and efforts to improve the quality of the bank’s loan portfolio. The leadership transition also comes at a time when investors and stakeholders are closely watching governance standards at public sector financial institutions. The permanent appointment is consequently expected to be assessed not only in terms of management continuity but also in relation to the future direction of NBP and the execution of its existing business priorities.
For the time being, the Cabinet Division memorandum remains the clearest public confirmation that the federal government has completed its decision on NBP’s new President and CEO. Although the selected individual’s identity has not been officially disclosed through the memorandum, the Finance Division has been instructed to proceed with implementation without delay. The decision ends the six week leadership gap following Hasnie’s departure and sets the stage for NBP to transition from interim management under Abdul Wahid Sethi to permanent leadership once the government formally announces the appointment.
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