The overall performance of the banking sector during the last couple of years has been quite impressive. A number of positive developments such as better energy supply and rise in manufacturing activity, improved security conditions, macroeconomic stability, rise in investor confidence, low inflation and commodity prices (particularly, oil prices) besides enabling regulatory environment have been instrumental in making banking sector grow steadily.
A well-structured financial system has a positive and significant impact on economic development and ensures the efficient utilization of financial resources, accelerates the saving and investment rate and help in poverty and inequality reduction by increasing the ability of individuals to access basic services like health and education.
Islamic Banking segment is growing at an exceptional pace. To promote Islamic Banking in the country, SBP has been playing its role through provisioning of necessary legal, regulatory, and supervisory infrastructure and awareness & capacity building initiatives. The Islamic Banking Industry (IBI) of Pakistan posted a significant growth during the past few years with both assets and deposits contributing in growth.
The State Bank of Pakistan (SBP) continues to promote the expansion of financial services outreach through alternative delivery channels. SBP is encouraging microfinance banks (MFBs) to increase access and usage of financial services especially by financially under privileged segments located in the rural and remote areas. Fast paced uptake of mobile financial services by MFBs as alternate means of service delivery has offered convenience to their financially under privileged retail customers.