Islamabad, The Pakistan Banks Association (PBA), on behalf of the
banking sector, hosted a reception in Islamabad to commemorate the commercial
launch of Mashreq’s full services digital retail bank in Pakistan, Mashreq Bank
Pakistan. This marks the first full-scale international deployment of Mashreq’s award
winning digital banking platform outside the UAE and a pivotal milestone in
Pakistan’s digital banking journey.
Mashreq is one of the leading financial institutions in the MENA region, with a strong
presence in major financial centres of the world, and the launch of its digital retail
bank in the country was celebrated as a proud occasion for Pakistan’s banking
industry. Known for its digital-first approach, customer-centric solutions, and
commitment to advancing financial inclusion, this launch marks an important
milestone in further strengthening investor confidence and deepening international
collaboration.
The reception was hosted in honour of the esteemed state guests His Excellency Abdul
Aziz Al Ghurair, Chairman of Mashreq, Mr. Ahmed Abdelaal, Group Chief Executive
Classification: Public Officer, and Mashreq’s global leadership team. On behalf of the banking sector, Mr. Zafar Masud, Chairman PBA, and foreign investors, Mr Yousaf Hussain, President of
Overseas Investors Chamber of Commerce and Industry (OICCI), welcomed the
distinguished dignitaries. Keynote speakers of the event included Mr Jameel Ahmad,
Governor of the State Bank of Pakistan (SBP) and Mr Bilal Azhar Kayani, Minister of
State for Finance and Railways. Eminent leaders from the government, financial sector
and the business community were also present in attendance.
The occasion underscored the pivotal role of the banking industry in driving
Pakistan’s economy. In 2024, banks paid Rs. 856 billion in income tax and over Rs. 1.5
trillion in total taxes. In the first half of 2025 alone, the sector recorded a fiscal
contribution of 30% higher compared to the same period in 2024, reaffirming its
position as a cornerstone of national revenue generation. Yet this contribution comes
under exceptionally heavy taxation, with an effective tax rate ranging between 55%
and 59%, making banking one of the most heavily taxed sectors not only in Pakistan
but across the region. Between 2021 and 2024, taxes on the sector surged by an
unprecedented 438%, placing Pakistani banks among the most heavily burdened in
the world.
The industry continues to spearhead reforms in digitalisation, working closely with
the SBP and relevant stakeholders to accelerate the shift towards a cashless economy.
Initiatives such as cross-bank eKYC, the Financial Data Exchange, and fintech
partnerships have already contributed to a sharp increase in women’s financial
inclusion, rising from 14% in 2021 to 43% in 2023. Similarly, the 2.41 billion retail
digital transactions recorded, valued at over Rs. 164 trillion in the recent quarter, are
a clear testament to the industry’s commitment to further its contribution towards a
documented economy.
Similar efforts to expand SME financing are already underway through credit
guarantee schemes and supply chain solutions, with the banking industry extending
support to more than ~300,000 SMEs, a growth of 57% over last year. SME Lending
grew by 41% YoY as of June 2025. At the same time, the agricultural sector has seen
Classification: Public significant progress, with agri lending surpassing Rs. 2.5 trillion and over 2.89 million farmers benefiting from dedicated support programmes, including farmer facilitation
schemes and electronic warehouse receipt financing, to name a few.
Equally important is the sector’s commitment to social responsibility, which has
grown into a defining pillar of its contribution to national progress. Over the past two
years, Pakistani banks have actively engaged in initiatives that directly impact local
communities, encompassing a range of areas, including education, healthcare,
environmental sustainability, and disaster relief. In 2024 alone, the industry
collectively contributed ~Rs. 5 billion to CSR activities, which is again the highest by
industry in Pakistan, underscoring its resolve to go beyond financial services and
create meaningful social value across the country.
The banking industry continues to be one of the most preferred sectors for foreign
direct investment (FDI) in the country. With the addition of players like Mashreq, PBA
believes that this cross-sector momentum will be further accelerated manifold, as it
brings global best practices, innovation, and healthy competition to the market.
The launch of Mashreq’s digital retail bank was also recognised as a reflection of the
growing confidence of international investors in Pakistan. Mashreq’s growing
presence is expected to enhance banking sector competitiveness, attract foreign direct
investment, and support sustainable economic growth.
The event concluded with the PBA extending its deepest appreciation to the
distinguished guests and affirming that Mashreq’s presence in Pakistan symbolises
not only the strengthening of bilateral ties but also the promise of a more inclusive,
innovative, and progressive financial future for Pakistan.
