The National Bank of Pakistan (NBP) has announced plans to shut down its operations in the capitals of three Central Asian states, Bishkek (Kyrgyzstan), Baku (Azerbaijan), and Almaty (Kazakhstan)—in the coming weeks, as detailed in its annual report.

This closure is part of the bank’s strategy to eliminate loss-making entities and exit low-yielding international markets. The board aims to enhance capital efficiency, minimize compliance risks, and improve returns in line with its long-term capital allocation strategy.

The NBP established its branches in Bishkek, Baku, and Almaty in the 1990s, shortly after these countries gained independence, intending to expand its foreign footprint and support Muslim nations in establishing their banking operations.

In 2021, the bank’s management decided to close seven overseas franchises and branches for the first time; however, the implementation of this plan was delayed due to regulatory processes and the need for approval from banking authorities.

Additionally, the NBP closed its branches in Paris and New York in 2024. The decision to shut down the New York branch followed full compliance with regulatory directives, ensuring a structured exit. Notably, the NBP faced a penalty of $55 million from New York authorities in 2022 and $265,000 from Paris in 2008 for regulatory violations.

In its report, the bank stated that it is adopting a more proactive and structured approach to strengthen risk and compliance measures. This includes enhancing credit management frameworks, fostering a culture of accountability, and clearly defining the roles of risk-takers and risk-managers.

At present, the NBP operates 21 branches, maintaining the largest foreign footprint among Pakistani banks in various countries.