HBL Claims Increasing Retirement Age Will Not Affect Costs

Habib Bank Limited (HBL) has enhanced the maximum age limit for its staff from 60 years to 65 years aimed at supporting the well-being of its staff members and their families. This is the first-of-a-kind move in Pakistan’s financial industry. The HBL spokesperson said other banks and companies in different industries should also consider raising the retirement age of their employees, considering the positive socio-economic impact. According to an HBL spokesperson, around 200 to 250 staff members retire from the Bank every year, and over the next 5 years, more than 1600 employees would have retired from the organization. “This initiative is taken in line with our belief of being a “Bank with a Soul” and our endeavor to continue to support our staff’s well-being whilst improving their quality of life. This ensures that the staff continues to financially support their families in the present global and local economically challenging times,” he added. Considering the increasing life expectancy in Pakistan which surged to an average 67.6 years, the staff members will remain an important part of the society with a valuable contribution to the economy which is not limited to the productivity of their organization but also to the banking industry and the country’s economy as a whole. The bank will not incur additional costs as a result of its decision, as it would have hired replacements for those retiring. The senior human resource in our organization is assets either in the public sector or in a private sector entity. Of course, their experience is valuable mainly in particularly in the banking sector which always retains high demand for human resources in most of the departments. Also, banks branches in remote areas and new branches always need staff to cater to the customers in Pakistan effectively. The initiative will also support the productivity of the bank’s human resources as experienced staff pass on those skills to the younger generation of bankers who could carry forward the legacy of the bank smoothly. On an optimistic note, these bankers could generate business opportunities due to their experience, which could create job opportunities for new Last year, the State Bank of Pakistan (SBP) reduced the age of banks CEO from 70 years to 65 years. Hence, enhancing the age of staff members also reflects the philosophy of equality at the organization. As a society, this is an initiative that not only Banks but the other industries should also follow. People retiring at the age of 60 are usually the head of their families and most of the time the only bread earner as well. Hence, this step can significantly contribute to the socio-economic development of the country if implemented across all industries, the spokesman remarked. HBL had declared a consolidated profit after tax (PAT) of Rs 12.1 billion for H1 2022. The bank booked a profit of Rs. 18.0 billion in H1 2021. HBL has reported lower profits as a result of the extremely high and retrospective taxes announced in the recent federal budget.