The official launch of Mashreq Bank Pakistan at an Islamabad event organized by the Pakistan Banks Association (PBA) marked the occasion to welcome Mashreq’s full-scale digital retail banking services into the country. The milestone not only enhances Pakistan’s digital banking process but also demonstrates an increasing confidence among foreign investors in the country’s economy.
Significance of Mashreq’s Entry
Mashreq, a leading financier in the MENA region, has extended its award-winning digital banking platform to Pakistan, marking the first comprehensive international implementation outside the UAE. Being customer-focused and digital-first in nature, Mashreq’s entrance underscores the potential of the banking sector in Pakistan and its role in promoting financial inclusion.
Distinguished Guests and Celebrations
It featured high-profile guests, including H.E. Abdul Aziz Al Ghurair, Chairman of Mashreq, Mr. Ahmed Abdelaal, Group CEO, and the global leadership of Mashreq. Mr. Zafar Masud, Chairman of PBA, and Mr. Yousaf Hussain, President of OICCI, greeted the dignitaries on behalf of the banking industry in Pakistan. The key speakers were Governor SBP Jameel Ahmad and Minister of State of Finance Bilal Azhar Kayani to highlight the significance of the event.
Banking Industry’s Contribution
The banking sector is crucial to Pakistan’s economy. By 2024, the total tax paid by banks amounted to approximately 856 billion, with more than 1.5 trillion in income tax and total taxes, respectively, which constitute one of the highest amounts of revenue to the state. The sector is also contributing to economic growth, despite having what is considered one of the highest effective tax rates in the world (55 to 59%).
Motivating Digital Transformation
The sector has been at the forefront of digital reforms, alongside the SBP, with features such as cross-bank eKYC, the Financial Data Exchange, and fintech partnerships. These have increased the pace of financial inclusion, especially among women who have increased by 14 percent in 2021 to 43 percent in 2023. Pakistan registered 2.41 billion retail digital transactions worth more than Rs. 164 trillion also which is a good indicator of the rapidity of the transition to a cashless economy.
Financing through SME and Agriculture
SMEs and agriculture have also been extended to Pakistani banks. A year-on-year increase of 41% and more than 300,000 SMEs were facilitated by mid-2025. Agricultural lending also rose to over Rs. $ 2.5 trillion, which helped close to 2.89 million farmers under programs such as electronic warehouse receipt financing and farmer facilitation schemes.
CSR and Social Responsibility
The banking sector has invested in education, healthcare, environmental sustainability, and disaster relief, in addition to financial contributions. Banks are also engaged in community development since, in 2024 alone, banks donated Rs. 5 billion to CSR activities, which is the highest in any industry in Pakistan.
Increasing Shareholder Confidence
The entry of Mashreq is a good indication of the foreign trust in the Pakistani economy. It is projected to improve the competitive nature of the sector, introduce innovativeness, and increase foreign direct investment. The PBA highlighted the fact that this is not only a step towards fortifying bilateral relations but also a promise of a more inclusive, progressive, and technologically advanced financial future for Pakistan.
