The Pakistan Banks’ Association (PBA) has extended its congratulations to the banking industry, particularly to seven Pakistani banks that secured positions among the top 15 Asia-Pacific banks in 2025, as ranked by S&P Global Market Intelligence. The association described the recognition as a milestone achievement that reflects not only institutional strength but also tangible benefits for ordinary investors and the broader economy.
In its statement, the PBA emphasized that this global recognition goes beyond boardroom success and translates directly into value creation for the public. The combined total return generated by the seven top-performing banks has resulted in substantial gains for small investors who collectively hold over 1.5 billion shares at the Pakistan Stock Exchange. These shareholders, the association noted, represent the true beneficiaries and owners of the banking sector’s recent performance.
Chief Executive Officer and Secretary General of the PBA, Muneer Kamal, highlighted that the scale of the share price rally across multiple banks underscores how the benefits of strong banking performance are reaching the grassroots level of the capital market. He pointed out that it is uncommon for banks to create such widespread shareholder value while simultaneously supporting real economic activity.
United Bank Limited emerged as an industry leader, holding the highest market capitalization among Pakistani banks and demonstrating that large-scale operations can coexist with strong returns. The PBA noted that UBL’s performance reflects a balance between stability and agility, reinforcing investor confidence in large-cap financial institutions.
Public sector banks also delivered standout results, underscoring improvements in governance and strategic oversight. The Bank of Punjab topped the entire Asia-Pacific ranking in terms of total percentage return, followed by the National Bank of Pakistan and The Bank of Khyber. According to the PBA, this historic performance highlights the role of effective governance frameworks and regulatory oversight by the government and the State Bank of Pakistan.
The rankings further reflected successful turnarounds and growth stories across the sector. Bank Makramah’s recovery and the emergence of Askari Bank were cited as examples of institutions that have significantly uplifted a large shareholder base. In the Islamic banking segment, Faysal Bank set a new benchmark for returns, reinforcing confidence in the Shariah-compliant banking model and its ability to deliver competitive performance.
Beyond market returns, the PBA drew attention to the sector’s expanding role in supporting economic recovery. Industry data shows that private sector credit grew by Rs1.1 trillion in FY25, compared to Rs470 billion in FY24, indicating a strong increase in working capital and fixed investment lending. This growth has been inclusive, with a 57% surge in the SME borrower base and a doubling of financing volumes to small and medium enterprises over the past two years.
The agriculture sector also witnessed a notable rebound. The borrower base increased from 2.7 million to nearly 3 million, reversing a downward trend observed since 2019, while disbursements reached a record Rs2.58 trillion. The PBA attributed part of this progress to the adoption of digital solutions such as Zarkhez-e, which have improved outreach and efficiency in agricultural financing.
Addressing recent media reports, the PBA clarified that claims of a 79% decline in private sector credit during the first half of FY26 were factually incorrect. Instead, private sector credit expanded by Rs654 billion during the period up to December, with the total loan book growing by 6.75% in Jul–Dec FY26. This expansion continued despite significant fiscal crowding out, as banks financed Rs1.95 trillion in government borrowing while maintaining support for priority sectors.
Looking ahead, the PBA reaffirmed its commitment to sustaining value creation for investors and deepening financial inclusion. The association stated that its dual objective remains rewarding small shareholders and ensuring that the benefits of banking sector growth reach every segment of the economy.
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