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KARACHI Aug 24,2026: The Governor of the State Bank of Pakistan (SBP) has called on banks to increase retail deposits and expand lending to the private sector to support Pakistan’s next phase of sustainable economic growth.
Speaking at the 11th Pakistan Banking Awards 2026 in Karachi, the Governor said Pakistan’s economy had remained resilient during FY26 despite severe floods, geopolitical tensions and uncertainty in global trade.
He said inflation remained close to the medium-term target, while inflation expectations stayed broadly stable. The current account deficit also remained near the lower end of the projected range.
The Governor said Pakistan’s foreign exchange reserves had continued to improve, exceeding the $18 billion end-June target. He noted that the quality of reserve accumulation had also improved, as the increase was mainly driven by the SBP’s foreign exchange purchases rather than borrowing.
He stressed that economic stabilization was only the first step. Pakistan now needed stronger and more sustainable growth, with the banking sector playing a key role in achieving that goal.
The Governor said banks’ total assets had reached Rs69 trillion, while deposits stood at Rs43 trillion at the end of June 2026. Bank profitability remained strong, and the Capital Adequacy Ratio stayed comfortably above international benchmarks and domestic regulatory requirements.
However, he said Pakistan still had considerable room to improve financial intermediation. Banking assets and deposits remain low relative to GDP compared with other emerging markets. At the same time, the country continues to have a high currency-to-deposit ratio.
The Governor urged banks to compete more actively for retail deposits by offering attractive returns and better services. He said stronger deposit mobilization would increase financial inclusion and give banks a more stable and diversified funding base.
He also called for increased lending to the private sector. According to the Governor, Pakistan’s credit penetration remains well below that of comparable emerging markets. The ratio of bank credit to the private sector relative to GDP has also declined significantly over the past three decades.
He said government financing needs alone did not explain this decline. Several emerging economies with higher levels of domestic government debt still have much higher private-sector credit-to-GDP ratios.
The Governor therefore urged banks to shift their business models towards mobilizing more deposits and providing greater financing to businesses and the private sector.
The 11th Pakistan Banking Awards were organized by NIBAF Pakistan in collaboration with Dawn Media Group and A. F. Ferguson & Co.
Meezan Bank Limited received the Best Bank award. Bank of Punjab won awards for Women Inclusion, Small and Medium Enterprises, and Agriculture Inclusion.
ASA Microfinance Bank Limited was named Best Microfinance Bank, while Bank Alfalah Limited won Best Bank for Digital Excellence. Meezan Bank also received the award for Best Bank for Customer Engagement.
Askari Bank Limited and Faysal Bank Limited jointly won the Best Mid-Sized Bank award, while HBL received the Best Bank for ESG award.
Pakistan Microfinance Investment Company Limited won the award for Best Contribution by a Non-Bank Entity.
