Pakistan reports NBP profit decline and record debt repayment

The National Bank of Pakistan (NBP) reported a 24% decline in net profit for the first half of calendar year 2026, with profit after tax falling to Rs. 32 billion from Rs. 42 billion in the same period last year. The bank attributed the decline to narrowing net interest margins following monetary policy easing, alongside increased operating costs and tax provisions. Despite the drop in earnings, NBP reported a resilient balance sheet and a solid capital adequacy position.

Separately, Pakistan’s Ministry of Finance has executed an early repayment of Rs. 1.2 trillion to the State Bank of Pakistan, marking the largest single tranche of domestic debt retired before maturity to date. This move is part of an ongoing strategy to manage domestic liabilities and reduce refinancing pressures. The government’s cumulative early debt repayments have now exceeded Rs. 5.92 trillion, with the scale of early repayments increasing significantly from Rs. 1.8 trillion in fiscal year 2025 to Rs. 2.9 trillion in fiscal year 2026.