Deposit Protection Corporation strengthens financial safety net for millions of bank customers across Pakistan.
KARACHI: The State Bank of Pakistan (SBP) has increased the deposit protection coverage for all eligible depositors of member banks to Rs1,000,000 per depositor per bank, significantly strengthening financial security for banking customers across the country.
The announcement was made in the fifth annual report 2024–25 of the Deposit Protection Corporation (DPC), which outlines the organisation’s financial performance, operational activities and key achievements.
Deposit Protection Corporation’s role
Established under the Deposit Protection Corporation Act, 2016, the DPC functions as a subsidiary of the State Bank of Pakistan. Its primary mandate is to compensate depositors in the event of a member bank failure, as and when notified by the SBP, and to provide financial support for the resolution of problem banks.
Coverage limit doubled for depositors
According to the report, the deposit protection limit has been doubled to Rs1 million per depositor per bank. This marks the second increase in coverage within six years of the corporation’s establishment, reflecting a gradual strengthening of Pakistan’s financial safety net.
As of June 30, 2025, there are approximately 91.78 million depositors in scheduled banks, out of which 90.83 million are eligible for protection under the scheme.
Their deposits are now covered up to the revised limit of Rs1 million per depositor per bank.
Strong financial position of DPC
The report highlights that the Deposit Protection Fund has surpassed Rs200 billion, indicating strong financial stability and the corporation’s ability to fulfil its mandate effectively.
Officials said the growing fund base enhances confidence in the banking system and supports long-term financial resilience in the country.
Legislative and institutional developments
The annual report also outlines amendments made to the DPC Act 2016, with a particular focus on expanding the corporation’s role in supporting the resolution of distressed or problem banks.
These changes are aimed at improving the overall framework for bank resolution and depositor protection in Pakistan.
Comprehensive financial review included
In addition to policy updates, the report includes a detailed financial review featuring five-year comparative analysis, an independent auditor’s report, and audited financial statements for the fiscal year 2024–25.
The SBP said the enhanced deposit protection framework reflects its commitment to maintaining financial stability and safeguarding public trust in the banking sector.
