KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has urged the country’s banks to adopt a forward-looking strategy anchored in digitalisation, artificial intelligence (AI), climate financing, and export facilitation, warning that institutions relying on traditional, government-centric lending models risk falling behind.
Speaking at the 10th Pakistan Banking Awards in Karachi, where he presented the Best Bank Award to Meezan Bank, the governor outlined a roadmap for transforming Pakistan’s financial sector over the next decade. He stressed that true progress would require banks to shift their business models towards serving private-sector needs—particularly those of SMEs, small depositors, and underserved populations.
He noted that banks must move away from dependence on government lending, emphasising that future competitiveness will belong to institutions capable of mobilizing deposits and extending credit to growth-driven segments of the economy.
The governor highlighted four priority areas for the banking sector. First, he called for deep integration of digital tools into banking operations and customer experiences, including mobile commerce, agriculture supply chains, credit scoring, and risk management. Second, he urged banks to adopt AI and machine-learning systems to build stronger risk models based on alternative data, allowing for customised financing for start-ups, small enterprises, and entrepreneurs lacking conventional documentation.
Third, he stressed the need for integrating climate risk into lending decisions, setting sustainability targets, and developing green financial instruments such as green bonds and sustainability-linked loans. Lastly, he encouraged banks to strategically realign their operations to better support Pakistan’s exporters, enabling export growth and improved competitiveness.
The event, organised by the National Institute of Banking and Finance (NIBAF) in collaboration with DAWN Media and A.F. Ferguson & Co., celebrated institutions demonstrating excellence and innovation.
Award recipients included: The Bank of Punjab, which won Best Bank for Women Inclusion, Best Bank for SMEs, and Best Bank for Agriculture Inclusion; Kashf Foundation, which received Best Microfinance Institution; Bank Alfalah, which secured both Best Bank for Digital Excellence and Best Bank for Customer Engagement; Faysal Bank, which won Best Mid-sized Bank; and HBL, which was declared Best Bank for ESG.
