• BoP dominates with 3 awards; Alfalah bags two
• SBP chief urges banks to shift away from ‘easy’ govt lending

KARACHI: Meezan Bank Ltd was named the best bank for a third time, while the Bank of Punjab (BoP) picked up three honours at the 10th Pakistan Banking Awards ceremony held on Friday.

Before conferring the awards, State Bank of Pakistan (SBP) Governor Jameel Ahmad, the chief guest on the occasion, praised the role of the Pakistan Banking Awards but was critical of banks’ low lending to the private sector and their heavy reliance on risk-free, high-yield loans to the government.

The ceremony was organised by the National Institute of Banking and Finance (NIBAF) in collaboration with Dawn Media Group and A.F. Ferguson & Co.

The governor presented the Best Bank Award to the chief executive officer of Meezan Bank and appreciated the institution’s performance and commitment to excellence. The winning of three awards by the Bank of Punjab drew widespread applause from the audience. The BoP won in the categories of Best Bank for Agriculture Inclusion, Best Bank for Women Inclusion and Best Bank for small and medium enterprises (SMEs).

Bank Alfalah received the awards for two categories, i.e. Best Bank for Digital Excellence and the Best Bank for Customer Engagement. The Best Microfinance Institution Award went to Kashf Foundation.

Faysal Bank was declared Best Mid-sized Bank, while HBL was recognised as Best Bank for ESG (Environmental, Social and Governance).

In a video message played during the ceremony, Dawn’s Chief Executive Officer Nazafreen Saigol Lakhani appreciated the hard work of the team that has been working for over the past 10 years to make the awards an important event for the financial sector.

However, she expressed concern over low economic growth, an indicator that banks had not done enough to stimulate the economy.

‘Banks need shift’

The SBP governor, in his speech, said the banking sector needed a fundamental shift over the next decade, driven by innovation, inclusion and responsibility.

He said this transformation would not be possible unless banks reoriented their business models towards serving the financial needs of the private sector, especially SMEs and small depositors.

“Banks that continue to rely on easy returns from lending to the government will eventually be left behind by institutions that are mobilising deposits and meeting the growing credit needs of the underserved segments,” the SBP governor warned.

He emphasised that banks needed to focus on four main areas. First, they should embed digitalisation into the everyday experiences of their customers and into their own business operations, including mobile commerce, agriculture supply chains, credit scoring and risk management.

Second, he urged banks to put in place artificial intelligence and machine-learning tools to build smarter risk models using alternative data and to design tailor-made financial products for small firms, start-ups and entrepreneurs who may lack conventional documentation.

Third, he stressed the need to integrate climate risk into banks’ credit decisions, set clear sustainability targets and develop green bonds and sustainability-linked loans to support climate financing.

Fourth, banks should “reassess their priorities and strategically realign their business model to better facilitate and strengthen Pakistan’s exporters,” he added.

Published in Dawn, November 15th, 2025