Key Takeaways
- State Bank Governor Jameel Ahmad highlights challenges like geopolitical tensions, inflation and climate risks.
- Focus areas include digital transformation and expanding financing for priority sectors.
- More than 92% of retail financial transactions now processed digitally.
State Bank Governor Jameel Ahmad has outlined the significant changes reshaping Pakistan’s banking sector during his address at the Pakistan Banking Summit. Speaking on Wednesday, Mr Ahmad highlighted a range of challenges including geopolitical tensions, inflationary pressures and climate-related risks that are redefining the landscape for financial institutions.
According to Ahmad, these developments present both significant challenges and new opportunities for innovation and growth in the financial sector. He emphasized that while the State Bank’s policy priorities remain focused on preserving macroeconomic and financial stability, there is a concerted effort to strengthen the financial sector's role in supporting resilient, inclusive, and sustainable economic growth.
The governor specifically highlighted two key areas central to Pakistan’s financial future: digital transformation and expanding financing for priority sectors. He stated that these technologies are improving efficiency, lowering costs, enhancing customer experience, and expanding financial inclusion. For instance, more than 92% of retail financial transactions are now processed digitally, compared with around 50% only a few years ago.
Ahmad also discussed the role of emerging technologies such as artificial intelligence (AI), cloud computing, open banking, fintech, advanced analytics, and real-time payments in reshaping financial services. These advancements are changing how financial institutions compete, innovate, and manage risks. He noted that the State Bank is promoting digital banking and digital payments, strengthening supervisory technology, enhancing cyber resilience, and encouraging responsible innovation through initiatives such as its Regulatory Sandbox.
In addition to technological reforms, Ahmad stressed the importance of integrating climate and sustainable finance into the financial system. This aligns with broader global trends towards sustainability and environmental responsibility in financial practices. He mentioned that the State Bank is working on these areas to ensure a modern, inclusive, secure, and innovation-driven financial system.
The governor’s remarks underscored the need for banks to adapt to rapid technological changes while also addressing emerging risks such as climate change. By focusing on digital transformation and sustainable finance, the State Bank aims to build a resilient and forward-looking banking sector that can support Pakistan's economic growth in the face of various challenges.
Our focus is on accelerating digital transformation, harnessing emerging technologies, including artificial intelligence, promoting customer-centric financial services, expanding financing for priority sectors and integrating climate and sustainable finance into the financial system.
Jameel Ahmad, State Bank Governor
