Pakistan’s central bank governor, Jameel Ahmad, has urged the country’s banking industry to expand its use of AI to improve financial inclusion and provide affordable services, particularly for SMEs, the agricultural sector, and women. Speaking at the Pakistan Banking Summit 2025, Ahmad emphasized the importance of leveraging AI and alternative data sources, such as cellular and satellite data, to create cost-effective delivery channels that enhance accessibility and efficiency in the financial sector.
The governor underscored the need for a significant shift in the banking industry’s approach, calling on financial institutions to rethink their business models and reassess their priorities. He stressed that sustainable economic growth is unattainable without deeper financial integration, noting that private sector credit in Pakistan remains at critically low levels. In his speech, he pointed out that banks in Pakistan primarily lend to large, established corporations, with around 74% of credit going to corporate entities, while SMEs receive a mere 5%. Ahmad argued that such an imbalance must be corrected to promote inclusive economic growth.
He also called for immediate efforts to digitize payments and provide businesses with secure digital transactional access. According to Ahmad, banks need to work “on a war footing” to modernize payment systems and facilitate digital financial services. The lack of digital integration, particularly in the SME and agricultural sectors, has hindered growth, making it essential for banks to adopt innovative solutions.
In addition to digital transformation, Ahmad urged financial institutions to improve their ability to assess the risks posed by climate change. He stressed that banks must integrate environmental considerations into their risk management strategies, as climate-related financial risks are becoming increasingly significant. He called for closer collaboration between businesses, academia, and policymakers to address sustainability challenges, develop research-based policy recommendations, and foster partnerships for long-term economic resilience.
The governor also outlined SBP Strategic Vision 2028, which focuses on promoting inclusive financial services, developing a robust digital financial ecosystem, and ensuring financial stability. He highlighted the recent amendment to the SBP Act, which formally recognizes financial inclusion as a core function of the central bank. This, he said, reflects the government’s commitment to expanding access to financial services for underserved communities.
Ahmad pointed to the progress made in financial inclusion over the past decade, noting that bank account coverage in Pakistan has increased from 47% in 2018 to nearly 64% of the adult population today. Additionally, the gender gap in financial access has narrowed from 47% to 34%. However, he acknowledged that more work is needed and outlined ambitious targets set under the National Financial Inclusion Strategy 2024-2028. By 2028, Pakistan aims to increase bank account coverage to 75% of the adult population while reducing the gender gap to 25%.
To meet these goals, Ahmad emphasized the need to enhance the depth, breadth, and quality of financial services, particularly for low-income individuals, microfinance clients, SMEs, and the agricultural sector. He reaffirmed the SBP’s commitment to fostering financial innovation, supporting digital transformation, and ensuring that the banking industry plays a more active role in driving inclusive and sustainable economic growth.
