The banking sector in Pakistan has concluded FY25 on a strong note, registering record growth that not only underscores its resilience but also sets the stage for deeper contributions to economic development. Riding on robust profitability, increased deposits, and expanding loan books, banks are gearing up to play an even more active role in driving financial inclusion and fostering equitable growth across the country.
Khurram Schehzad, a prominent voice in Pakistan’s financial landscape, emphasized this momentum by highlighting the sector’s renewed pledge to scale up support for small and medium enterprises (SMEs) and agriculture financing. His message comes at a pivotal juncture, as the economy seeks to build more resilient foundations through broader participation and resource allocation to historically underserved segments.
Throughout FY25, the banking industry saw significant traction in SME lending, with several institutions rolling out specialized products tailored for small businesses. This growth trajectory was mirrored in agri financing, where fresh initiatives and relaxed credit terms were introduced to reach more farmers and agribusiness operators. The collective push reflects a conscious strategy to bring grassroots economic actors into the fold of formal finance.
Analysts note that this expansion into SME and agri segments is not merely about business diversification for banks, but a strategic necessity for Pakistan’s long-term economic health. SMEs are widely recognized as the backbone of the national economy, contributing nearly 40 percent to GDP and absorbing a large chunk of the labor force. Similarly, agriculture remains critical, supporting livelihoods in rural areas and ensuring food security. Strengthening these sectors through accessible and tailored financial solutions can directly uplift millions.
As the banking sector moves into FY26, industry insiders expect a sharper focus on digital enablement to drive this inclusive agenda. Many banks are already investing in tech platforms and data-driven models to streamline loan processing, enhance credit scoring for SMEs, and develop innovative products for farmers. The growing synergy between traditional banking and fintech solutions is seen as a key catalyst for accelerating outreach and reducing operational costs.
Khurram Schehzad’s statement resonates strongly within this context. By underlining the sector’s “unwavering commitment” to financial inclusion and economic uplift, he signals a unified front by banks to continue expanding beyond traditional urban-centric lending. It also aligns with broader policy directions from regulators and the government, which have consistently called for channeling more resources into productive sectors of the economy.
While FY25 may have set new records for the banking industry, the real impact will be measured by how effectively this growth is translated into empowering small businesses, supporting farmers, and fostering equitable prosperity. The sector’s strategic pivot toward SME and agri financing is thus both a promising economic lever and a crucial social responsibility. As FY26 unfolds, all eyes will be on how banks operationalize these commitments to shape a more balanced and inclusive financial ecosystem in Pakistan.