Banks urged to focus on private credit

Governor State Bank of Pakistan (SBP) has urged banks to reorient their business models towards stronger retail deposit mobilisation and greater private-sector financing, emphasising that the banking sector has a critical role to play in supporting Pakistan's next phase of sustainable economic growth. Addressing the 11th Pakistan Banking Awards 2026 in Karachi, the governor said that while policymakers had achieved the difficult task of stabilising the economy, stabilisation alone was not sufficient to put Pakistan on a path of high and sustainable growth. Highlighting the resilience of the banking industry, the governor noted that banks' total assets had reached Rs69 trillion, while deposits stood at Rs43 trillion at end-June 2026. Profitability remained strong, and banks' Capital Adequacy Ratio continued to remain comfortably above both international benchmarks and domestic regulatory ...