The State Bank of Pakistan (SBP) has emphasized the need for deep-rooted structural reforms to ensure sustainable economic growth and break the country’s recurring “boom-bust” cycles. This message was highlighted during the 25th Zahid Husain Memorial Lecture in Karachi, which featured a keynote address by renowned economist Professor Amir Sufi and remarks by Deputy Governor SBP Saleemullah.
Deputy Governor Saleemullah acknowledged Pakistan’s improving macroeconomic stability while stressing the central bank’s proactive role in fostering technology-led and inclusive economic growth. He highlighted that channeling adequate capital toward the real economy is crucial to expanding financial access for small and medium enterprises (SMEs), youth, and women. The Deputy Governor also underscored the importance of shifting from traditional collateral-based lending to cash flow-based financing as a key step toward sustainable, inclusive growth.
Professor Amir Sufi, Bruce Lindsay Distinguished Service Professor at the University of Chicago and 2017 Fischer Black Prize recipient, discussed global trends showing economies increasingly moving toward high-tech and professional services sectors. These sectors rely heavily on intangible assets such as research, innovation, and specialized knowledge. He noted that traditional banking models, which depend on physical collateral, are often ill-suited to finance innovation-driven firms. Professor Sufi stressed the need for financial intermediaries to embrace cash flow-based lending, venture capital, and private equity to support technology-led growth.
During the lecture, Deputy Governor Saleemullah also outlined SBP’s ongoing initiatives, including risk coverage facilities for SME and agriculture finance, the Banking on Equality policy, and the Regulatory Sandbox for fintech. Supported by digital infrastructure such as e-KYC and faster payment systems, these measures are designed to strengthen Pakistan’s financial ecosystem and enable broad-based, technology-driven economic expansion.
The event concluded with an interactive fireside session where Professor Sufi further elaborated on policy priorities for Pakistan, addressed questions from attendees, and emphasized the need for regulatory coordination and institutional reforms to support high-growth sectors.
The lecture reinforced the critical role of financial sector reforms, technological adoption, and inclusive finance in shaping Pakistan’s future economic landscape. By focusing on cash flow-based lending, innovative financing solutions, and equitable access to capital, the SBP aims to support sustainable growth, drive innovation, and strengthen resilience in the economy.
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