KARACHI: Pakistan’s central bank governor, Jameel Ahmad, on Tuesday, urged banks to expand their use of artificial intelligence (AI) to enhance access to affordable financial services, particularly for small and medium enterprises (SMEs), the agricultural sector, and women, The News reported.
Speaking at the Pakistan Banking Summit 2025, he emphasized that the banking industry must leverage AI and alternate data sources, such as cellular and satellite data, to develop cost-effective delivery channels that improve the reach, usage, and quality of financial services.
He further stressed the urgency of digitizing business payments, urging banks to provide secure digital transaction platforms to facilitate seamless financial operations.
Highlighting the importance of private sector credit, Ahmad stated that no country can achieve sustainable economic growth with low levels of private credit.
Call for a New Banking Model
The SBP governor urged banks to rethink their current business strategies and prioritize financial intermediation.
“For achieving a more inclusive and sustainable economic growth, the country requires a significant increase in the depth and breadth of the financial sector. Currently, banks’ lending portfolios are heavily skewed, with around 74% of loans going to large corporations, while only 5% is allocated to SMEs,” he noted.
He called on banks to increase private sector credit, particularly for SMEs and the agricultural sector, and to mobilize more deposits.
Climate Change and Financial Risks
He also emphasized the importance of assessing climate-related risks, urging financial institutions to integrate climate considerations into credit, market, liquidity, and operational risk assessments.
Recognizing the crucial role of businesses and academia, he encouraged research, policy recommendations, and collaborations to tackle sustainability challenges.
SBP’s Strategic Vision 2028
The governor outlined SBP’s Strategic Vision 2028, which focuses on:
- Promoting inclusive and sustainable financial access
- Building an innovative and digital financial ecosystem
- Enhancing efficiency, effectiveness, and stability of the financial system
He highlighted that financial inclusion has been explicitly added as one of SBP’s core functions under the amended SBP Act, underscoring its significance.
Financial Inclusion Progress and Future Goals
Over the past decade, Pakistan has made significant progress in financial inclusion:
- Bank account coverage has increased from 47% in 2018 to nearly 64% of the adult population.
- The gender gap in financial access has narrowed from 47% to 34%.
Referring to the National Financial Inclusion Strategy (2024-2028), Ahmad set new targets:
- Bank account coverage to reach 75% of the adult population by 2028.
- The gender gap to further reduce to 25%.
To meet these ambitious goals, SBP aims to enhance the depth, breadth, and quality of financial services, particularly for low-income individuals, the microfinance sector, SMEs, and agriculture.
