On July 30, 2025, the National Institute of Banking and Finance (NIBAF) Pakistan held an extensive training session at its Karachi campus, focused on Treasury and Liquidity Risk Management. The session was attended by officers from the State Bank of Pakistan (SBP) and various commercial banks, marking a significant initiative in capacity building and strategic financial risk preparedness within the country’s banking ecosystem.
Led by Mr. Faisal Sarwar, a seasoned financial risk management expert, the training aimed to enhance the technical capabilities of banking professionals in handling liquidity stress and managing treasury operations more effectively. The program reflected NIBAF’s ongoing commitment to fostering a well-equipped financial workforce aligned with international best practices and local regulatory frameworks.
The session provided participants with comprehensive exposure to modern liquidity risk frameworks, including methods of identifying, measuring, and mitigating liquidity risk in dynamic market conditions. A key component of the training was cash flow forecasting—enabling officers to build robust predictive models tailored to their institutions’ operational and strategic needs.
In addition to forecasting, the training emphasized the application of regulatory metrics such as the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), tools now integral to Basel III compliance. These components were critically analyzed through practical examples and case discussions, offering attendees hands-on insights into how global standards can be effectively integrated into local banking practices.
Another focus area was the development and implementation of treasury risk mitigation strategies. Participants explored how evolving market volatility, tightening global monetary policies, and domestic fiscal adjustments necessitate refined approaches to managing interest rate risk, currency mismatches, and funding gaps. Practical frameworks were discussed to support contingency planning and proactive treasury governance.
Mr. Faisal Sarwar’s training methodology balanced theoretical foundations with practical application, encouraging interactive discussions and real-world scenario analysis. His guidance was particularly impactful in helping participants understand the interplay between liquidity risks and overall financial stability, especially in light of recent global economic disruptions.
This training comes at a critical time as Pakistan’s financial sector continues to navigate external economic pressures and internal reform mandates. With the SBP prioritizing risk management excellence, initiatives like this underline the importance of upskilling institutional human capital to safeguard the integrity and stability of the banking sector.
NIBAF’s initiative not only supported the professional development of individual participants but also contributed to strengthening the collective resilience of Pakistan’s financial institutions. As digital transformation and regulatory compliance increasingly shape modern banking, such specialized training programs are becoming vital to sustaining long-term financial health and institutional credibility.
The session concluded with participants acknowledging the practical value of the training and expressing keen interest in further capacity-building programs.