ISLAMABAD: In a strong show of support, Pakistan’s banking industry has formally endorsed the Federal Budget 2025–26, hailing it as a blueprint for sustainable growth and inclusive development. The Pakistan Banks Association (PBA), representing the financial sector most immediately impacted by fiscal policy, issued a clear statement of confidence in the government’s economic roadmap.
This high-level endorsement is seen as a major validation of the government’s reform agenda, particularly as it relates to fiscal consolidation, investment in green finance, and transformative public-private initiatives.
Officials from the Ministry of Finance said the backing from the PBA demonstrates trust not only in the content of the budget but also in the collaborative approach that shaped its priorities. “This is more than just budget support—it’s an affirmation of the strategic direction Pakistan is taking,” a senior finance ministry source said.
Among the standout reforms praised by the PBA is the resolution of Pakistan’s long-standing PKR 1.275 trillion circular debt—accomplished without passing the financial burden on to the public. The government’s approach, designed to stabilize the energy sector and curb systemic inefficiencies, is being viewed as a breakthrough moment in fiscal management.
The banking sector has also taken note of pioneering initiatives launched in parallel with the budget. These include Pakistan’s first-ever digital agricultural loan schemes, which aim to modernize rural credit access, and the introduction of outcome-based financing models for skills development—a strategic shift toward performance-linked investments in human capital.
Banking leaders say these moves reflect a new identity for financial institutions in Pakistan, transitioning from traditional lenders to active development partners. The emphasis on green transition, SME empowerment, and rural upliftment highlights an emerging consensus that long-term economic resilience must be inclusive, technology-driven, and climate-conscious.
“The readiness of banks and Development Finance Institutions (DFIs) to lead these efforts is a national asset,” a budget official noted. “It’s clear we are entering a new era where Pakistan’s financial sector is not just responding to policy—but helping shape it.”
Going forward, both government and banking officials have expressed a shared commitment to deepening the partnership. There is consensus that continuity of reforms, transparent fiscal management, and targeted financing will be critical to achieving long-term macroeconomic stability and broad-based prosperity.
With this alignment, stakeholders believe Pakistan is well-positioned to attract international investment and deliver tangible results across the economy—from urban centers to rural heartlands.
Financial Sector On Board. Pakistan On Track.
