ISLAMABAD: The Bank of Punjab (BOP), alongside the British Asian Trust (BAT) jointly acting as the Transaction Advisors and Program Managers (TAPM), announced the formal launch of the Pakistan Skills Impact Bond (PSIB)—a AAA-rated, Government of Pakistan (GoP)-backed, privately placed Term Finance Certificate (TFC) valued at Rs 1,000 million.
Developed under the visionary guidance of Minister of Finance Muhammad Aurangzeb and Minister of Education and Professional Training Dr. Khalid Maqbool Siddiqui, and in close collaboration with the National Vocational and Technical Training Commission (NAVTTC), the PSIB represents a paradigm shift in Pakistan’s social impact financing landscape.
Under the leadership of Zafar Masud, President and CEO of The Bank of Punjab, BOP has played a pivotal role in structuring this innovative financial instrument. As a results-based “pay-for-success” model, the PSIB channels upfront investor funding into high-impact skills development programs, with outcome payments tied directly to independently verified measurable milestones, such as successful job placements and sustainable employment for thousands of Pakistani youth.
This initiative leverages private sector efficiency to deploy Rs 1 billion in funding, closing the national skills gap, fostering economic participation, and enhancing women’s inclusivity in the workforce.
The PSIB has received strong international endorsement, including a generous contribution from the Foreign, Commonwealth & Development Office (FCDO) as the International Developmental Partner, channeled through BAT via FCDO’s Private Sector and Capital Markets Department.
Speaking at the launch ceremony in Islamabad, Zafar Masud stated: “ Bank of Punjab has played the role of risk investor and underwriter, providing initial capital and assuming performance risk to enable this blended finance mechanism. This initiative marks a turning point—not merely a financial arrangement, but a deep commitment to Pakistan’s economic stability and human capital development. it is a testament to how the banking sector can lead national transformation.”
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, also underscored the transformational importance of the PSIB in Pakistan’s broader economic reform agenda and human capital strategy. He described the day as “an important moment focused on education and training,” reiterating that Pakistan’s demographic dividend can only be realized if the country succeeds in upskilling and reskilling its youth at scale.
Copyright Business Recorder, 2026
