State Bank of Pakistan (SBP) Governor Jameel Ahmad has called on banks to rethink their business models and prioritize financial deepening, emphasizing that sustainable economic growth is not possible with low private credit levels. Speaking at the Pakistan Banking Summit 2025, he urged financial institutions to enhance their role in financial intermediation.
Outlining SBP’s Strategic Vision 2028, he highlighted key goals: expanding access to financial services, fostering a digital financial ecosystem, and improving the efficiency and stability of the financial system. “The explicit inclusion of financial inclusion as a core function in the amended SBP Act reflects its growing importance,” he stated.
Mr. Ahmad noted Pakistan’s progress in financial inclusion, with bank account coverage rising from 47% in 2018 to nearly 64% of the adult population. The gender gap in account ownership has also narrowed from 47% to 34%. Under the National Financial Inclusion Strategy 2024-2028, SBP aims to push bank account coverage to 75% and further reduce the gender gap to 25% by 2028.
“For inclusive and sustainable growth, we need a broader and deeper financial sector,” he said, pointing out that 74% of bank credit goes to large corporations, while SMEs receive just 5%. He urged banks to expand lending to SMEs and the agriculture sector while mobilizing more deposits.
He also stressed the importance of artificial intelligence and alternative data sources, including cellular and satellite data, to enhance financial services for underserved segments. “We must work urgently to digitize business payments and offer secure digital transaction platforms,” he added.
Addressing climate risks, Mr. Ahmad called on financial institutions to assess climate change impacts on credit, market, and liquidity risks. He emphasized the role of businesses and academia in driving sustainability through research, policy recommendations, and collaboration.
He expressed optimism that discussions at the Pakistan Banking Summit would help shape policies for a more inclusive and resilient financial future.
