KARACHI: The Governor of the State Bank of Pakistan (SBP) has urged the country’s banking sector to reorient its business models toward stronger retail deposit mobilization and increased private-sector financing to support Pakistan’s next phase of sustainable economic growth.
Addressing the 11th Pakistan Banking Awards 2026 in Karachi, the Governor said Pakistan’s economy had demonstrated resilience during FY26 despite a challenging environment marked by severe floods, geopolitical tensions, domestic and external shocks, and uncertainty in global trade.
He noted that inflation averaged close to the medium-term target range, while inflation expectations remained broadly anchored. The current account deficit also stayed close to the lower end of the projected range. Meanwhile, foreign exchange reserves continued to rise and comfortably exceeded the end-June target of $18 billion.
The Governor highlighted that the quality of reserve accumulation had also improved, as the increase was driven primarily by SBP foreign exchange purchases rather than debt-driven accumulation.
He stressed, however, that economic stabilization alone would not be sufficient to place Pakistan on a path of high and sustainable growth. According to him, the banking sector has a particularly important role to play in supporting the country’s next stage of economic development.
Banking Sector Assets Reach Rs 69 Trillion
Highlighting the resilience of Pakistan’s banking industry, the Governor said total banking-sector assets had reached Rs 69 trillion, while deposits stood at Rs 43 trillion at the end of June 2026.
He added that profitability remained strong and banks’ Capital Adequacy Ratio continued to remain comfortably above both international benchmarks and domestic regulatory requirements.
At the same time, he pointed to significant opportunities for improving financial intermediation. Despite substantial growth, banking-sector assets and deposits remain relatively low as a share of GDP compared with other emerging markets.
The Governor also noted that Pakistan’s currency-to-deposit ratio remains elevated, indicating considerable scope to reduce reliance on cash and strengthen the country’s deposit base.
He encouraged banks to compete more actively for retail deposits by offering attractive returns combined with quality services. A stronger culture of retail deposit mobilization, he said, would promote financial inclusion while providing banks with a more diversified and stable funding base.
Greater Focus on Private-Sector Credit
The SBP Governor also called for greater financing for the private sector, noting that credit penetration in Pakistan remains significantly below that of comparable emerging markets.
He observed that the ratio of bank credit to the private sector relative to GDP has declined considerably over the past three decades. While government financing requirements have contributed to the situation, he said they do not fully explain the trend, pointing out that several emerging economies with higher levels of government domestic debt maintain substantially higher private-sector credit-to-GDP ratios.
He therefore urged banks to rethink their business models by mobilizing more deposits and expanding financing to businesses and other private-sector borrowers.
Meezan Bank Named Best Bank
The 11th Pakistan Banking Awards were organized by NIBAF Pakistan in collaboration with Dawn Media Group and A. F. Ferguson & Co.
The Governor commended the organizers for continuing the awards for an 11th edition, describing the initiative as a testament to the enduring partnership dedicated to recognizing institutions contributing to the future of Pakistan’s banking industry.
Meezan Bank Limited received the prestigious Best Bank award.
Other major award winners included:
- 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 & Faysal Bank Limited
- Best Bank for ESG: HBL
- Best Contribution by Non-Bank Entity: Pakistan
The awards highlighted the growing importance of financial inclusion, digital banking, customer engagement, SME financing, agriculture financing and environmental, social and governance (ESG) practices in Pakistan’s evolving financial sector.
Disclaimer: This report is based on the information provided regarding the 11th Pakistan Banking Awards 2026 and remarks attributed to the Governor of the State Bank of Pakistan. It is intended for general news and informational purposes only and should not be considered financial, investment or banking advice. Readers are advised to verify official announcements and award details from the relevant institutions.
