The State Bank of Pakistan (SBP) recently hosted the 16th SAARCFINANCE Seminar in Islamabad on February 24, 2025. Titled “Challenges and Opportunities in the Capacity Building of Central Banks and the Financial Industry: Lessons for SAARC Countries,” the seminar attracted experts, policymakers, and delegates from the South Asian Association for Regional Cooperation (SAARC) member countries. The event, held at the National Institute of Banking and Finance (NIBAF), aimed to discuss key issues affecting the future of central banking and financial systems in the region.
The seminar was inaugurated by Mr. Saleemullah, Deputy Governor of SBP, who delivered the keynote address. In his speech, Mr. Saleemullah emphasized the profound impact that technological advancements, geoeconomic shifts, and climate change are having on central banking. He specifically pointed out the accelerating role of digital technologies such as Artificial Intelligence (AI), Machine Learning, and blockchain, which are enhancing the efficiency, inclusivity, and affordability of financial services.
During his address, Mr. Saleemullah outlined three primary challenges facing central banks and financial institutions in the current landscape. First, he noted the rapid adoption of AI, big data analytics, and blockchain, which are driving a need for urgent reskilling of central bank staff to stay competitive in this evolving environment. Secondly, he highlighted the global digital divide, which presents significant challenges for regions like South Asia in adopting digital technologies effectively. Finally, the Deputy Governor addressed the rise of fintech and growing financial interconnectedness, which have created new challenges related to cybersecurity, data privacy, and financial fraud. This, he argued, calls for greater regional and global collaboration to tackle these issues effectively.
In his concluding remarks, Mr. Saleemullah reiterated the importance of digital transformation for financial institutions, calling it no longer a choice but an imperative. He encouraged substantial investments in advanced analytics, AI, and automation while emphasizing the need for regulatory frameworks that can support innovation while maintaining financial stability. He also pointed out the essential role of SAARCFINANCE as a platform for cross-border collaboration, urging the member countries to continue joint training programs, knowledge exchange, and the establishment of regional centers of excellence to strengthen their collective capabilities.
The seminar featured discussions from an esteemed panel of academics, policymakers, and industry leaders from a range of prestigious institutions, including the International Monetary Fund (IMF), Huawei, Allied Bank Limited (ABL), the Asia School of Business, LUMS, the Bahrain Institute of Banking and Finance, and the Financial Stability Institute. These experts provided valuable insights into critical issues such as workforce development, technological adoption, and the role of regulatory frameworks in the modern financial ecosystem.
As the event drew to a close, Mr. Riaz Nazarali Chunara, CEO of NIBAF, delivered the closing remarks. He stressed the need for collective action among SAARC countries to address the evolving challenges in the financial industry. He urged that by embracing innovation, investing in human capital, and fostering regional cooperation, SAARC nations could build a more resilient and inclusive financial ecosystem. This, he argued, would better equip the region to navigate the complexities of the 21st-century global economy.
The 16th SAARCFINANCE Seminar served as an important platform for dialogue and collaboration among financial leaders, underscoring the critical need for technological innovation, regional cooperation, and capacity building to address the challenges of modern central banking and financial systems.