The State Bank of Pakistan governor urged banks at the 11th Pakistan Banking Awards to reorient their business models toward stronger retail deposit mobilization and greater private sector financing. He argued that deeper financial intermediation is needed to support sustainable growth following economic stabilization, with Pakistan’s banking assets, deposits and private sector credit remaining low relative to gross domestic product compared with other emerging markets. Banks should compete more actively for retail deposits by offering attractive returns and quality services, reducing reliance on cash while building more diversified and stable funding. The governor also challenged banks to reverse the long-term decline in private sector credit relative to GDP, noting that government financing needs do not fully explain the trend. At end-June 2026, banking sector assets stood at PKR 69 trillion and deposits at PKR 43 trillion, while capital adequacy remained above international benchmarks and domestic requirements.
2026-08-21State Bank of Pakistan
State Bank of Pakistan urges banks to expand retail deposits and private sector lending
The State Bank of Pakistan governor urged banks to strengthen retail deposit mobilization and increase private sector lending. He said both deposit and credit penetration remain low compared with other emerging markets, despite banking assets reaching PKR 69 trillion and deposits PKR 43 trillion at end-June 2026.