Pakistan’s banking sector is revving up to support key growth areas with the Pakistan Banks’ Association (PBA) outlining a set of proposals alongside regulators. The plans target three critical sectors: Small and Medium Enterprises (SMEs), Digital & Technology, and Agriculture.
Federal Minister for Finance and Revenue, Mohammad Aurangzeb, praised the initiatives, highlighting their potential to drive sustainable economic growth. A key aspect of the plan involves voluntary targets set between banks and regulators. This ensures each bank contributes to priority sectors based on their strengths, without mandated lending quotas.
The proposals for agriculture include revamping crop loan insurance schemes, reviving agricultural cooperative banks, and exploring tech-based solutions for targeted subsidies. Financial inclusion, particularly for subsistence farmers, is a key focus.
The SME sector will see banks offering financial and management support to entities like SMEDA and NCGCL. Additionally, the PBA and SBP are revising SME regulations and retail portfolio limits to ease financing for SMEs.
The digital and technology recommendations aim to facilitate retail foreign investment, integrate freelancers into payment gateways, and improve foreign remittance flows. Technology-based products and services are also proposed to leverage export opportunities.
Minister Aurangzeb commended the PBA’s analysis and recommendations, acknowledging the banking sector’s critical role in economic growth. He also approved a governance structure for implementing these plans, with joint leadership from the Finance Ministry, SBP, and PBA.
The PBA chairman pledged their commitment to working closely with the government and regulators to effectively implement the recommendations and contribute significantly to Pakistan’s economic well-being.