SBP Governor Jameel Ahmad has urged banks to reshape their business models by mobilising more retail deposits and expanding private-sector financing.
Speaking at the 11th Pakistan Banking Awards 2026 in Karachi, Ahmad said banks have a critical role in supporting Pakistan’s next phase of sustainable economic growth.
He said the economy remained resilient through a difficult FY26. The year brought severe floods, geopolitical tensions and uncertainty in global trade.
Economy Stabilises but Growth Challenge Remains
The governor said inflation averaged close to the medium-term target range, while inflation expectations stayed broadly anchored. The current account deficit also remained near the lower end of the projected range.
Foreign exchange reserves exceeded the end-June target of $18 billion. Ahmad said SBP’s foreign exchange purchases, rather than debt, drove much of the accumulation. SBP reserves later stood at $17.08 billion on August 13 after subsequent movements.
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“Policymakers had achieved the difficult task of stabilising the economy. However, stabilisation alone was not sufficient to put Pakistan on a path of high and sustainable growth. The banking sector has a particularly important role to play in this next phase.”
Ahmad said Pakistan’s banks remained financially resilient. Total banking-sector assets reached Rs69 trillion at end-June 2026, while deposits stood at Rs43 trillion.
Profitability remained strong. Banks’ Capital Adequacy Ratio also stayed comfortably above international benchmarks and domestic regulatory requirements.
Banks Urged to Increase Private-Sector Credit
Despite strong growth, banking assets and deposits remain low relative to GDP compared with other emerging markets. Pakistan also continues to have a high currency-to-deposit ratio.
Ahmad said banks have room to reduce reliance on cash and strengthen their deposit base. He encouraged banks to compete harder for retail deposits through attractive returns and better services.
A stronger retail deposit culture could expand financial inclusion while giving banks a more diversified and stable funding base.
The governor also raised concern over weak private-sector credit penetration. He said the private-sector credit-to-GDP ratio had declined significantly over the past three decades.
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“The government’s budgetary financing needs were not the only explanation for this trend [low private sector credit], as several emerging economies with higher government domestic debt have significantly higher private-sector credit-to-GDP ratios,” he said.
Ahmad urged banks to mobilise higher deposits and provide more financing to businesses and the private sector.
The ceremony was organised by NIBAF Pakistan in collaboration with Dawn Media Group and A. F. Ferguson & Co. The awards marked their 11th year of recognising excellence in Pakistan’s banking industry.
Pakistan Banking Awards 2026 Winners
- Best Bank: Meezan Bank Limited
- Best Bank for Women Inclusion: Bank of Punjab
- Best Microfinance Bank: ASA Microfinance Bank Limited
- Best Bank for Small and Medium Enterprises: Bank of Punjab
- Best Bank for Agriculture Inclusion: Bank of Punjab
- Best Bank for Digital Excellence: Bank Alfalah Limited
- Best Bank for Customer Engagement: Meezan Bank Limited
- Best Mid-Sized Bank: Askari Bank Limited and Faysal Bank Limited
- Best Bank for ESG: HBL
- Best Contribution by Non-Bank Entity: Pakistan Microfinance Investment Company Limited
