Bank of Punjab, in collaboration with British Asian Trust acting as Transaction Advisors and Program Managers, formally launched the Pakistan Skills Impact Bond, a AAA-rated, Government of Pakistan-backed Term Finance Certificate valued at PKR 1,000 million. Developed under guidance from Finance Minister Muhammad Aurangzeb and Minister of Education and Professional Training Khalid Maqbool Siddiqui, and in close coordination with NAVTTC, PSIB introduces an innovative financing model to Pakistan’s social development sector. The initiative represents a shift toward performance-based funding for skills development and employment generation.
Structured under the leadership of Zafar Masud, President and CEO of Bank of Punjab, PSIB operates on a pay-for-success approach. Investor funds are deployed upfront into targeted skills development programs, with outcome payments tied to independently verified results such as successful job placements and sustainable employment for youth. This model leverages private sector efficiency to deploy PKR 1 billion in funding, aiming to reduce the national skills gap, promote economic participation, and improve women’s inclusion in the workforce. The AAA rating and government backing provide confidence to investors while ensuring accountability and measurable socioeconomic impact.
International partners have also contributed to PSIB’s success. The Foreign, Commonwealth & Development Office supports the program through British Asian Trust, reinforcing the bond’s potential to attract global funding and optimize program management. FCDO plans further involvement through its REMIT program, engaging UK-based Pakistani diaspora investors and promoting PSIB in upcoming initiatives. By linking financial returns to verifiable outcomes, the bond redefines the intersection of banking and social development, encouraging technical training improvements, higher job placement rates, and long-term career stability for participants.
Bank of Punjab and British Asian Trust, in their role as TAPM, have overseen the inaugural issuance of PSIB, establishing a blueprint for future performance-driven instruments in education, healthcare, women’s empowerment, climate resilience, and economic development. Speaking at the launch ceremony in Islamabad, Zafar Masud highlighted BOP’s role as risk investor and underwriter, providing initial capital and assuming performance risk to enable the blended finance model. Finance Minister Muhammad Aurangzeb and Education Minister Khalid Maqbool Siddiqui emphasized PSIB’s transformational importance for Pakistan’s economic reform and human capital strategy. NAVTTC Executive Director Muhammad Amir Jan described the bond as a defining moment in Pakistan’s skills ecosystem, reflecting the shift toward transparent, outcome-based approaches. Contributions from PACRA, Pak Oman Investment Company Limited, and Haidermota & Co. were also recognized for enabling the pilot and providing necessary legal and financial guidance.
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