Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Gen V Season 2 trailer
    Videos

    Gen V Season 2 Trailer Cast, Plot, Premiere Details

    July 26, 2025 3 Min Read
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Pakistan’s Banking Sector Expands 15% in 2024
PhotoNews PakistanPhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
The State Bank of Pakistan’s (SBP) 2024 Financial Stability Review
PhotoNews Pakistan > Business > Pakistan’s Banking Sector Expands 15% in 2024
Business

Pakistan’s Banking Sector Expands 15% in 2024

Web Desk
By Web Desk Published April 25, 2025 3 Min Read
Share
Photo: Pro Pakistan
SHARE

The State Bank of Pakistan’s (SBP) 2024 Financial Stability Review, released in April 2025, underscores significant improvements in Pakistan’s macroeconomic environment.

The SBP’s 2024 Financial Stability Review emphasises several key points: declining inflation, stable exchange rates, and a strong recovery in private sector credit. These factors, fiscal consolidation, and an improved external account balance indicate a positive economic outlook for 2024 (CY24).

The banking sector demonstrated strong performance, with a 15.8% balance sheet expansion driven by investments and advances. Private sector advances rebounded significantly, fueled by economic revival, monetary policy easing, and a tax policy linked to the advances-to-deposit ratio (ADR). However, this policy also slowed deposit mobilisation, increasing reliance on borrowings.

The non-performing loans (NPLs) ratio improved to 6.3% in December 2024 from 7.6% the previous year, reflecting manageable credit risk. The capital adequacy ratio rose to 20.6%, well above regulatory requirements.

Islamic banking institutions saw robust growth in assets and branch networks, aligning with SBP’s focus on Shariah-compliant finance. However, microfinance banks (MFBs) continued to face stress, highlighting vulnerabilities in the sector.

The non-bank financial sector showed varied results. Development Finance Institutions (DFIs) experienced a contraction, while Non-Bank Financial Institutions (NBFIs) expanded significantly. The insurance sector maintained steady performance, contributing to overall financial stability.

Digital Transactions and Financial Infrastructure

Financial Market Infrastructures (FMIs) supported system stability through operational resilience. Digital transactions, particularly via the Raast platform, gained momentum after introducing the person-to-merchant module in late 2023. Additionally, an MoU between SBP and the Arab Monetary Fund integrated Raast with Buna, facilitating remittances from the Gulf region.

Despite progress, challenges persist. Rising borrowings, stressed microfinance banks, and global protectionist measures pose risks to sustained growth. The review emphasises the need for structural reforms to build external buffers and mitigate financing risks. Subdued economic activity also impacted the non-financial corporate sector, though liquidity and repayment capacities remained stable.

The SBP’s review highlights the importance of continued reforms to ensure long-term economic stability. While Pakistan’s financial sector remains resilient, global uncertainties and protectionist trends could challenge progress.

TAGGED:Featured
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Cardi B Pregnancy

Cardi B’s Candid Response to Pregnancy Question: “Cause I Keep F—–“

Keanu Reeves marriage rumors

Keanu Reeves and Alexandra Grant Debunk Marriage Rumors

26th Constitutional Amendment Pakistan

Supreme Court Debates CJP’s Power to Form Full Court

Post Archives

More Popular from Photonews

María Corina Machado Nobel 2025
Top NewsWorld

María Corina Machado Wins 2025 Nobel Peace Prize

2 Min Read
Sohail Afridi KP's New CM
Khyber Pakhtunkhwa

PTI’s Sohail Afridi Elected Khyber Pakhtunkhwa’s New Chief Minister

2 Min Read
Kylie Jenner King Kylie backlash
Entertainment

Kylie Jenner’s ‘King Kylie’ Campaign Faces Backlash Over Police Imagery

2 Min Read
Offbeat

Pakistan’s First Female Corneal Transplant Saves Soldiers’ Vision

Pakistan Army surgeons restored the sight of two Pakistan Army soldiers who had lost their vision,…

October 11, 2025
Top NewsWorld

Macron Reappoints Sébastien Lecornu as France’s Prime Minister

French President Emmanuel Macron reappointed Sébastien Lecornu as prime minister, mere days after Lecornu’s resignation on…

October 11, 2025
Tech

Samsung Forecasts Highest Q3 Profit Since 2022 on AI Memory Chip Demand

Samsung Electronics predicts an operating profit of 10.1 trillion won ($7.11 billion) for the third quarter…

October 14, 2025
Business

KSE-100 Index Rebounds Strongly on Pak-US Ties and IMF Optimism in October 2025

The Pakistan Stock Exchange (PSX) benchmark KSE-100 Index rebounded strongly, closing at 162,969.67 after rising 4,526.25…

October 14, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?