Prominent figures from Pakistan's technology and business sectors have issued a strong appeal to the State Bank of Pakistan (SBP). They are urging the central bank to fundamentally rethink and modernize the country's banking framework to fuel the growth of high-tech industries.
A Call for Regulatory Modernization
The collective call to action was made during a recent seminar titled ‘Banking on Growth: Financing Pakistan’s Digital Future’. The event was organized by the Pakistan Software Houses Association (P@SHA) and took place in Karachi. Industry experts argued that the current banking regulations are outdated and ill-suited for the dynamic needs of modern technology companies and startups.
Speakers emphasized that traditional loan models, which require physical collateral like property, are a major barrier for software and service-based firms. These companies often possess valuable intellectual property but lack tangible assets, making them ineligible for conventional financing. This gap stifles innovation and prevents scalable Pakistani tech companies from emerging on the global stage.
Key Recommendations for the SBP
The seminar produced several concrete recommendations aimed at the central bank. A primary focus was on enabling and regulating venture capital (VC) and private equity funds. Participants stressed that the SBP should create a conducive environment for these alternative financing mechanisms, which are better equipped to assess the risk and potential of high-growth tech ventures.
Furthermore, experts called for the development of new banking products specifically designed for the tech sector. They also highlighted the need for specialized training for bankers to help them understand the unique business models and valuation methods of technology companies. This knowledge gap currently leads to risk aversion and missed opportunities within the financial sector.
Muhammad Azfar Ahsan, former Minister of State and founder of a corporate advisory firm, pointedly stated that the SBP must move beyond its traditional role. He argued that the bank should actively "enable venture capital and private equity" to flow into the market, treating this as a critical national priority.
The Economic Imperative for Change
The push for banking reform is not just about supporting individual companies; it is framed as a vital economic necessity. The technology sector is seen as a key driver for exports, job creation, and foreign direct investment (FDI). Without a financial system that can nurture it, Pakistan risks falling further behind in the global digital economy.
Badar Khushnood, a well-known technology consultant, echoed this sentiment. He noted that while the government speaks of a "Digital Pakistan" vision, the existing banking rules contradict those goals. He called for immediate and decisive action from the SBP to align financial regulations with the nation's technological ambitions.
The consensus from the seminar is clear: Pakistan's economic future is increasingly digital. For the country to harness this potential, its financial bedrock—the banking system—must undergo a significant transformation. The ball is now in the court of the State Bank of Pakistan to respond to this urgent call from industry leaders.
