State Bank of Pakistan (SBP) Governor Jameel Ahmad on Tuesday urged banks to boost their usage of artificial intelligence to enable the delivery of cost-effective financial services to under-served sectors.
Addressing the Pakistan Banking Summit 2025, he advised using alternate data sources such as cellular, and satellite data to provide “cost-effective alternative delivery channels to enhance the access, usage, and quality of financial services, particularly to [small- and medium-enterprises], agriculture and our female population.” He also stressed on the need to help businesses digitize their payments by providing digital transactional access, preferably via secure portals.
During his talk, Ahmad stressed that the country could not achieve economic growth without expanding financial inclusion, particularly private credit. “Our banks need to rethink their current business model, reassess their priorities, and play a more active role in financial intermediation,” he said.
The senior official noted that the SBP’s Strategic Vision 2028 “mainly focuses on promoting inclusive and sustainable access to financial services; building an innovative and inclusive digital financial ecosystem; and enhancing efficiency, effectiveness, fairness and stability of the financial system.” The explicit addition of financial inclusion is one of the SBP’s core functions in the amended SBP Act, he added.
Highlighting the significant strides in financial inclusion over the past decade, Ahmad noted bank account coverage was nearing 64 percent of the adult population, up from 47 percent in 2018. Additionally, he noted, the gender gap had narrowed from 47 percent to 34 percent.
Referring to the latest National Financial Inclusion Strategy 2024-2028, he said the central bank has set a target to increase bank account coverage to 75 percent of the adult population and reduce the gender gap to 25 percent by 2028. “To achieve these ambitious targets, we want to enhance the depth, breadth, and quality of financial services, particularly for low-income individuals, the microfinance sector, SMEs, and agriculture,” he stressed.
Appreciating the role of the banking and financial system in the economic development of Pakistan, he said achieving a more inclusive and sustainable economic growth required a significant increase in the depth and breadth of the financial sector. “The composition of banks’ lending portfolio in Pakistan is highly skewed toward established corporates at around 74%, and only 5% goes to SMEs,” he said.
Urging financial institutions to “improve their ability to assess the impact of climate change across credit, market, liquidity, and operational risks,” he underlined the pivotal role of businesses and academia in tackling sustainability challenges. He also stressed on the need for research, policy recommendations, and fostering collaborations.
Ahmad concluded his address by hoping participants of the Pakistan Banking Summit would engage in thoughtful discussions and idea sharing that may serve as a cornerstone for the policies and initiatives that can drive the country toward a more sustainable and equitable future.