KARACHI: Geopolitical tensions, persistent inflationary pressures, rapid technological changes, climate-related risks and rising debt burdens were redefining the landscape in which financial institutions operate, State Bank Governor Jameel Ahmad said on Wednesday.

Addressing the Pakistan Banking Summit, he said these developments presented significant challenges but also created new opportunities for innovation and growth in the financial sector.

Against this backdrop, he said the SBP’s policy priorities remained firmly anchored in preserving macroeconomic and financial stability. At the same time, the central bank was working to strengthen the financial sector’s role in supporting resilient, inclusive and sustainable economic growth, he added.

Accordingly, the SBP is pursuing a forward-looking reform agenda, he said.

“Our focus is on accelerating digital transformation, harnessing emerging technologies, including artificial intelligence, promoting customer-centric financial services, expanding financing for priority sectors and integrating climate and sustainable finance into the financial system,” Mr Ahmad said.

He said he wanted to focus on two key areas central to Pakistan’s financial future, i.e. digital transformation and expanding financing for priority sectors.

The governor said the banking industry was undergoing a profound transformation, adding that rapid advances in artificial intelligence, cloud computing, open banking, fintech, advanced analytics and real-time payments were reshaping financial services.

These technologies were improving efficiency, lowering costs, enhancing customer experience and expanding financial inclusion. They were also changing how financial institutions compete, innovate and manage risks, he said.

“We want to build a financial system that is modern, inclusive, secure and innovation-driven. Accordingly, we are promoting digital banking and digital payments, strengthening supervisory technology, enhancing cyber resilience and encouraging responsible innovation through initiatives such as our Regulatory Sandbox,” the SBP governor said.

He said more than 92 per cent of retail financial transactions were now processed digitally, compared with around 50pc only a few years ago. This growing digital ecosystem, he said, was supported by 268 million financial accounts and more than 49m uniquely registered Raast IDs.

Published in Dawn, July 9th, 2026