Jameel Ahmad calls for sector-specific financial products and digital innovation to support Pakistan’s economic growth
ISLAMABAD: Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has urged commercial banks to move beyond traditional lending models and reduce reliance on government-backed financing schemes by developing sector-specific financial products tailored to the needs of agriculture, small and medium-sized enterprises (SMEs), and other productive sectors.
Addressing the concluding session of the Pakistan Banking Summit 2026 on Wednesday, the SBP governor said expanding credit to priority sectors would promote entrepreneurship, create employment opportunities, improve productivity, and strengthen Pakistan’s long-term economic growth.
He identified financing for agriculture, SMEs and affordable housing as one of the banking sector’s biggest challenges, noting that these sectors play a crucial role in employment generation, exports and economic resilience.
Digital Transformation at the Core
Jameel Ahmad said the banking industry is undergoing rapid transformation driven by artificial intelligence and digital technologies, adding that the SBP is pursuing a forward-looking reform agenda centred on digital innovation.
He said the central bank’s priorities include accelerating digital transformation, leveraging artificial intelligence, promoting customer-centric financial services, expanding financing for priority sectors, and integrating climate and sustainable finance into Pakistan’s financial system.
The governor encouraged banks to view digital transformation as a long-term strategic investment rather than merely a technology project and to develop products that meet the evolving needs of customers, particularly women, young people, SMEs and other underserved segments.
SBP Calls for Sector-Specific Financing
The SBP governor urged banks to boost lending by introducing innovative financing solutions, saying the policy framework is already in place.
He encouraged banks to strengthen credit assessment using alternative data, expand outreach to underserved businesses and make greater use of digital platforms to lower transaction costs.
Jameel Ahmad also highlighted the SBP’s initiatives to modernise agricultural finance through value-chain financing, investment in storage infrastructure, climate-resilient farming, digital technologies, land information systems and alternative delivery channels to improve access to finance for small farmers.
SME Financing Target Increased
The governor said the SBP has strengthened refinance, guarantee and risk-sharing mechanisms while removing key regulatory barriers and revising prudential regulations for SME financing.
According to him, these reforms have led to a significant increase in outstanding SME financing and the number of SME borrowers.
The central bank has set a target of increasing outstanding SME financing to Rs1.5 trillion by June 2028 while expanding the number of SME borrowers to 750,000.
He urged banks to make greater use of technology, data analytics and partnerships with fintech companies and other service providers, saying the revised regulatory framework provides greater flexibility to design products suited to the diverse needs and risk profiles of different sectors.
Macroeconomic Stability Supports Growth
Reflecting on Pakistan’s economic performance during FY2025-26, Jameel Ahmad said the country had preserved macroeconomic stability, built modern digital infrastructure and introduced reforms aimed at fostering innovation and expanding financial inclusion.
He added that the improving macroeconomic environment provides a favourable foundation for Pakistan’s banking sector to accelerate its transformation and play a stronger role in supporting sustainable economic growth.