State Bank of Pakistan Governor Jameel Ahmad calls for banks to shift from government lending to SME-focused digital and climate-aware banking

State Bank of Pakistan Governor Jameel Ahmad, speaking at the 10th Pakistan Banking Awards, set out a blueprint for transforming Pakistan’s banking system over the next decade around innovation, inclusion and responsibility. He urged banks to reorient their business models towards meeting private-sector needs, particularly for small and medium-sized enterprises (SMEs) and small depositors, cautioning that institutions relying on easy returns from government lending risk falling behind banks that mobilize deposits and expand credit to underserved segments. The priorities highlighted included embedding digitalization into customer experiences and internal operations such as mobile commerce, agriculture supply chains, credit scoring and risk management, and deploying artificial intelligence and machine learning to incorporate alternative data into risk models and develop tailored products for small firms and entrepreneurs lacking conventional documentation. He also called for integrating climate risk into credit decisions, setting sustainability targets, and developing green bonds and sustainability-linked loans, alongside a strategic realignment to better support Pakistan’s exporters. Meezan Bank received the Best Bank Award, with other winners including The Bank of Punjab (women inclusion, SMEs, and agriculture inclusion), Bank Alfalah (digital excellence and customer engagement), Kashf Foundation (microfinance), Faysal Bank (mid-sized bank), and HBL (ESG).