Karachi, November 17, 2023 – The State Bank of Pakistan (SBP) has announced an extensive five-year strategic plan aimed at transitioning the current conventional banking system into a Sharia-compliant financial system for the country.
SBP Governor Jameel Ahmad officially launched the plan, titled “SBP Vision 2028,” during a ceremony held at the SBP Karachi headquarters, attended by senior management.
SBP Vision 2028, the first plan introduced after amendments to the SBP Act, outlines the central bank’s vision, mission, and key objectives for the period 2023-2028. Developed through a consultative and inclusive process involving key stakeholders, the strategic plan addresses the evolving risks and challenges to the economy and financial stability, including climate change, digital innovations, disruptions, and cybersecurity threats.
Governor Jameel Ahmad emphasized that the strategic plan revolves around six key goals, including maintaining inflation within the medium-term target range, enhancing the efficiency and stability of the financial system, promoting inclusive access to financial services, transforming into a Sharia-compliant banking system, fostering innovation in digital financial services, and modernizing SBP into a high-tech, people-centric organization.
These strategic goals incorporate five cross-cutting themes: strategic communication, climate change, technological innovation, diversity and inclusion, and productivity and competitiveness.
The SBP Vision 2028 places a strong emphasis on making SBP a people-centric institution, with a primary focus on achieving and maintaining price stability. Initiatives in the plan include improving the effectiveness of monetary policy, addressing structural issues, and enhancing awareness through quality publications.
Ensuring the stability of the financial system is a key priority, given the increasing complexity of shocks, including climate change, technological advancements, cybersecurity threats, and financial innovations. The plan aims to enhance the capacity of banks to manage such shocks while improving the regulatory and supervisory capabilities of SBP.
While significant progress has been made in financial inclusion over the last decade, the SBP Vision 2028 aims to increase bank account coverage to 75 percent of the adult population. Efforts will also be directed towards improving the quality of financial services for low-income individuals, SMEs, and farmers, with a focus on sustainable and green financing.
In alignment with the Federal Shariat Court’s decision, the plan outlines a detailed strategy for transforming the conventional banking system into a Sharia-compliant one, addressing challenges such as converting government debt into Shariah-compliant financing and simplifying Shariah-compliant financing products.
The plan also underscores the continued development of a robust Digital Financial Services Ecosystem, leveraging initiatives such as Raast and digital banks. Efforts will be made to expand digital payments, ensure effective oversight of digital financial institutions, and enhance digital financial literacy through media campaigns.
Governor Jameel Ahmad acknowledged the crucial role of human resources and technological infrastructure in achieving the plan’s objectives. Investments in HR, technology, and infrastructure will continue to align with market dynamics, with a goal of making SBP a paperless institution.
The plan includes explicit key success measures for each strategic goal, aiming to enhance accountability and implementation. Monitoring will be conducted by the Executive Committee, with annual updates provided to the SBP Board of Directors.
In closing, Governor Jameel Ahmad expressed gratitude to the Strategic Planning Team, Steering Committee, senior management, Executive Committee, predecessors, and SBP employees for their contributions to the development of the SBP Vision 2028.
