Karachi (The COW News Digital)Artificial Intelligence (AI) tools are poised to revolutionize lending practices and risk management in Pakistan’s banking sector, said Governor of the State Bank of Pakistan (SBP), Jamil Ahmed, during the Pakistan Banking Awards 2025 ceremony. Speaking at the event, Governor Ahmed emphasized that AI integration would enable faster loan approvals, lower operational costs, and open new opportunities for previously underserved borrowers.
The Governor highlighted that the country celebrated the 10th Pakistan Banking Awards, with the primary goal of strengthening and modernizing the banking industry. “Our banking sector is profitable, and the government has successfully maintained surpluses over the past two years, despite challenging economic conditions,” he noted. The fiscal improvements, he added, have also enhanced Pakistan’s credit rating, potentially easing access to international financing and reducing the government’s borrowing needs.
Jamil Ahmed underscored the need for banks to diversify away from reliance on domestic debt and government bonds. He urged the industry to focus on financing businesses, industries, and households to stimulate investment, job creation, and economic growth. “Banks that fail to adapt to changing economic circumstances risk falling behind,” he warned.
The Governor further highlighted the growing adoption of AI and machine learning technologies in the banking sector. These tools, he said, allow banks to move beyond traditional credit files and collateral assessments, utilizing real-time data from digital records, supply chains, and mobile or utility information to evaluate borrowers’ creditworthiness. AI-driven credit scoring, he emphasized, creates new opportunities for first-time borrowers, youth, and women, thereby enhancing financial inclusion.
“AI-based solutions are transforming the traditional ‘one-size-fits-all’ model,” Jamil Ahmed said. “Banks can now provide tailored solutions for large and specialized clients, while improving efficiency and sustainability.” He added that the future banking model must focus on innovation, effectiveness, and leveraging technology to meet evolving customer needs.
During the ceremony, banks demonstrating exceptional performance were honored with awards. The Pakistan Banking Award Show was organized by the National Institute of Banking and Finance, and attended by top executives and representatives from various banks across the country.
Governor Ahmed concluded that AI-driven decision-making is reshaping the traditional banking landscape, promising a more inclusive, efficient, and technologically advanced financial sector in Pakistan.
