The Pakistan Banks Association (PBA), representing the country’s banking sector, hosted a reception in Islamabad to mark the commercial launch of Mashreq Bank Pakistan, the digital retail banking arm of Mashreq. This development represents the first full-scale international rollout of Mashreq’s award-winning digital platform outside the UAE, underscoring a significant milestone in Pakistan’s digital financial journey.
Mashreq, one of the MENA region’s leading financial institutions with a strong footprint in global financial hubs, was welcomed as a key entrant to Pakistan’s banking ecosystem. Known for its customer-first digital banking model and commitment to expanding financial inclusion, Mashreq’s arrival has been described by industry leaders as a symbol of growing international investor confidence in Pakistan.
The event honored high-profile dignitaries including His Excellency Abdul Aziz Al Ghurair, Chairman of Mashreq, and Ahmed Abdelaal, Group CEO, alongside the bank’s global leadership. Representing Pakistan’s financial community, PBA Chairman Zafar Masud and OICCI President Yousaf Hussain extended a warm welcome to the guests. Senior government and financial leaders, including SBP Governor Jameel Ahmad and Minister of State for Finance Bilal Azhar Kayani, delivered keynote remarks.
The reception also highlighted the broader role of Pakistan’s banking sector in national development. In 2024 alone, banks contributed Rs856 billion in income tax and over Rs1.5 trillion in total taxes. In the first half of 2025, the sector’s tax contribution was already 30% higher compared to the same period last year. Despite being one of the most heavily taxed sectors in the region, with effective rates between 55% and 59%, the industry remains a cornerstone of state revenue. Between 2021 and 2024, sectoral taxation surged by 438%, placing Pakistani banks among the most taxed globally.
The sector’s push toward digitalisation was also emphasized, with initiatives such as cross-bank eKYC, the Financial Data Exchange, and fintech partnerships driving progress toward a cashless economy. Women’s financial inclusion has risen sharply from 14% in 2021 to 43% in 2023, while retail digital transactions reached 2.41 billion, valued at Rs164 trillion in the latest quarter.
Support for small and medium enterprises continues to expand, with nearly 300,000 SMEs now benefiting from tailored credit solutions and guarantee schemes. SME lending recorded 41% year-on-year growth by June 2025. Meanwhile, agricultural lending has exceeded Rs2.5 trillion, reaching more than 2.89 million farmers through innovative programs like electronic warehouse receipt financing and farmer facilitation schemes.
The industry’s role in social responsibility was also recognized, with banks collectively contributing Rs5 billion to CSR initiatives in 2024, the highest by any sector in Pakistan. These programs cover education, healthcare, environmental projects, and disaster relief, further demonstrating the sector’s community impact beyond financial services.
With Mashreq’s entry, the PBA expressed confidence that Pakistan’s banking industry will gain momentum through global best practices, innovation, and healthy competition. Leaders stressed that the launch reflects international confidence in Pakistan’s economic trajectory and will help foster greater foreign direct investment in the financial sector.
The event concluded with PBA reaffirming its commitment to building a more inclusive, innovative, and sustainable financial ecosystem, while extending appreciation to Mashreq’s leadership for choosing Pakistan as a strategic growth destination.
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