Economic development: Banking sector playing pivotal role: Kayani

KARACHI: Minister of State for Finance & Railways and Head of the Prime Minister’s Delivery Unit, Bilal Azhar Kayani on Tuesday said the banking sector is playing a pivotal role in Pakistan’s economic development, adding that a strong banking system was the foundation of sustainable economic growth.

Addressing the Pakistan Banking Summit organised by the Pakistan Banks Association (PBA), Kayani said facilitating easy access to finance for the private sector remained one of the government’s key economic priorities and that effective measures were being taken to strengthen the country’s banking system.

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He said the government was working on strategies to encourage citizens to adopt digital payment options, stressing that a seamless user experience was essential for increasing digital financial inclusion.

He also underscored the Government’s roadmap for advancing a cashless Pakistan, emphasising the role of digital payments, technology, and coordinated public-private action in accelerating financial inclusion, improving economic documentation, and driving long-term economic growth.

“The PBA and other stakeholders should sit together to assess what more can be done.

Significant progress has already been made, but the Prime Minister wants to see further improvements,” he said.

Kayani said the government had allocated Rs800 billion for the Benazir Income Support Programme (BISP), adding that every eligible beneficiary would have a digital wallet through which financial assistance would be transferred directly. “This is one of our initiatives to advance Pakistan’s digital journey,” he said.

The minister said collaboration with the private sector was critical to achieving the government’s objective of building a cashless economy.

PBA inaugurated the second Pakistan Banking Summit 2026 (PBS’26) on Tuesday, setting the stage for two days of high-level discussions on the policies, partnerships, and innovations required to strengthen Pakistan’s financial sector and support the country’s next phase of economic growth.

The opening day brought together more than 600 attendees from across Pakistan’s banking and financial ecosystem, including senior government officials, regulators, banking executives, international experts, development partners, academia, and corporate Pakistan.

Discussions centered on the economic and policy priorities shaping the financial sector, with sessions exploring global economic trends, digital transformation, priority-sector financing, payments, and emerging technologies. By bringing together diverse stakeholders on a single platform, the Summit seeks to foster collaboration, exchange global best practices, and advance practical solutions for a more resilient, inclusive, and future-ready financial system.

Addressing the inaugural session, PBA Chairman Zafar Masud emphasised that sustained collaboration between the banking industry, policymakers, and the regulator will be critical to building a resilient, inclusive, and future-ready financial system that supports Pakistan’s long-term economic growth.

Masud highlighted the banking sector’s progress in expanding priority-sector financing, accelerating digital transformation, and advancing financial inclusion.

Saleem Ullah, Deputy Governor, State Bank of Pakistan, outlined SBP’s vision for expanding access to finance for SMEs and strengthening the sector’s role in driving inclusive and sustainable economic growth.

Shahmir Khaliq, Global Head of Services at Citi, offered a global perspective on the future of financial services, highlighting the transformative role of digital innovation, interoperable payment ecosystems, and cross-border connectivity in shaping the next generation of banking.

Other notable speakers included Simon Andrews, Regional Director, International Finance Corporation (IFC); Dr. Ailish Campbell, EVP, Global Public Sector, Mastercard; Maximilian Biswanger, Investment Director, Head of Digital Financial Services, among others.

The Summit will continue on 8 July with sessions on Pakistan’s economic outlook, capital markets, climate-responsive and sustainable banking, Islamic finance, and next-generation talent and leadership.

Copyright Business Recorder, 2026